Why Gas Prices in Europe are Currently Low: Insights from an Energy Expert

Sergei Kolobanov, deputy director of the Russian Center for Energy Economics, said a number of factors, such as the weather, austerity measures and consumer confidence in energy resources, have led to lower gas prices.

Kolobanov explained that the sharp increase in gas prices in Europe last year was caused by expectations and fears of a shortage of gas in the future, especially in winter, noting that current gas prices are related to supply and demand factors in the market.

According to the Russian expert, many positive factors converged on the European gas market, which led to a drop in its prices, including austerity measures taken by some European countries, a decrease in gas consumption in the region, and warm weather. last winter and spring allowed the Europeans to keep their reserves. Excellent gas reserves.

The Russian expert did not rule out that gas prices would fluctuate again and could double, explaining this by the fact that the potential for LNG production in the world has not increased significantly over the past year, which means that with an increase in demand due to economic growth in Asia, prices may rise again .

It is worth noting that gas futures prices for June recorded a decline last Thursday and fell below $300 per thousand cubic meters for the first time in two years.

Source: News

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