Fears that liquefied natural gas (LNG) supplies could fall due to power outages in Brazil and strikes at factories in Australia pushed gas prices in Europe to $450 per 1,000 cubic metres. newspaper reports “Kommersant”.
Gas prices rose 15 percent in Europe in just one day. The hot and windless weather established in the European Union countries also facilitates the rise in prices.
The newspaper notes that most likely the immediate cause of the sharp rise in prices was a major accident in Brazil’s electricity system that affected almost all states of the country. Brazil, as a rule, significantly increases its LNG purchases in order to close its energy deficit through gas-fired power plants in case of interruptions in the operation of hydroelectric power plants, which are the backbone of the country’s energy. Prices rose further as prices rose last week due to the threat of strikes at LNG facilities in Australia.
In addition, according to experts, the increase in prices is also affected by the recovery in gas demand in China.
At the same time, analysts believe that these factors are temporary and not a fundamental reason for maintaining high gas prices in Europe for a long time.
Previously reportedGas stock prices in Europe rose sharply this week due to the abnormal heatwave in August and risks of reduced liquefied natural gas (LNG) supply.
Previously recognizedWhen oil prices drop to $50 a barrel.