Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented on the state of the European gas market to Forbes.
The cap on gas prices was invented in the wake of the scare from the price "swings" of 2021-2022, Alexey Belogoryev notes.
"Back then, there was a feeling that huge amplitudes of price changes could shake the market for another year or two," he recalls. — In fact, prices went down rapidly in the winter and spring of 2023, when it became clear that the EU market had adapted to the loss of Russian exports much faster than expected, primarily due to a sharp and steady reduction in demand. Since then, the cap of 180 euros per MWh, or just under $2,000 per thousand cubic meters, has looked obvious and, I would even say, an outlandish anachronism." Although the situation on the European gas market remains difficult and quite tense, and in 2025 it looks worse than in 2024, but nothing remotely resembling the events of 2022 threatens the market. "Therefore, the cancellation of the price cap is nothing more than a formality," Belogoryev concludes.
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