Economist Skryabin: gas prices in Europe rose by almost 50 percent in two weeks
Financial analyst Dmitry Skryabin named a sharp decline in the supply of liquefied natural gas (LNG) among the reasons for the increase in gas prices in Europe. The expert named the reasons for the increase in the cost of fuel during a conversation with Lenta.ru.
The onset of cold weather is the main factor influencing the rise in gas prices in Europe, Skryabin noted. “In my understanding, the factor of the onset of the cold period, even rather the normalization of the average temperature, since the end of October was unusually warm in Europe, is one of the main reasons for the increase in gas prices,” the expert said.
The second factor could be a sharp decline in LNG supply, he suggested. “In late October, off the coast of Spain, for example, several dozen tankers were seen waiting to be unloaded, which created a short-term threat of excess gas supply and also put pressure on prices,” the specialist said.
However, a number of suppliers have decided not to sell fuel at a low price. Also, the demurrage of unloaded tankers created risks for new deliveries and pushed the growth of the freight rate, Skryabin shared. “This led to a sharp reversal of gas prices up – by almost 50 percent in two weeks,” the economist explained.
Earlier it became known that the price of gas in Europe amounted to 1414.4 dollars per thousand cubic meters. It was reported that gas prices on the London ICE exchange soared by 17 percent.
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