Economists believe that gas prices in the European Union in the near future will depend mainly on the weather.
The Novosti agency quotes the statement of Sergey Kolobanov, Deputy Head of the Department “Economics of the Fuel and Energy Complex” of the Russian Center for Strategic Research: “Gas prices on the European stock exchange will fluctuate next month under the influence of a number of factors, primarily weather to a greater extent – on the air temperature, and to a lesser extent – on the availability of sufficient wind power to generate electricity in wind turbines, and sunny days for solar power plants in the southern regions).
The expert added that some kind of man-made accident could also affect the rise in prices, for example, damage to infrastructure or the cessation of pumping Russian gas through the territory of Ukraine.
On the other hand, Ronald Smith, Senior Analyst at BKS – World of Investments, stated that “strong winds increase power generation at wind farms, thereby reducing the need for gas-fired electricity generation. The most important factor is atmospheric temperature.” .
Smith explained that historically, if the air temperature drops one degree Celsius after it falls below 13 degrees Celsius, the need for gas for heating increases by 4%.
Source: News