Foreign exchange prices of natural gas in Europe have been above 500 dollars per thousand cubic meters since the beginning of October; The fact that prices are so high may be due to fears before the start of the heating season. This was reported by “Russian newspaper” referring to Alexey Grivach, deputy head of the National Energy Security Fund.
According to the publication, gas prices are not falling despite the record capacity of underground gas storage facilities in Europe. There was almost no free space left in the underground gas storage facility, as as of November 3, the occupancy rate reached 99.49%.
According to the vice president of the National Energy Security Fund, the general uneasiness ahead of the heating season about a possible gas shortage is due to the situation in pricing policy. Moreover, according to Grivach, the lack of a safety margin in the EU energy system also affects pricing policy.
Among other reasons to save gas and maintain prices, he cited continued demand for the resource and hoped to save it for a “rainy day.”
In turn, Dmitry Scriabin, portfolio manager of Alfa Capital Management Company, explained the situation in gas prices in the EU as geopolitical. According to him, the issue is what is happening in the Middle East. The expert emphasized that the conflict threatens the supply of liquefied natural gas (LNG) to Europe.
Before that, Uzbekistan via Kazakhstan accepted 300 million cubic meters of gas from Gazprom.
Previously recognizedWhen oil prices fall to $50 per barrel.