Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Sputnik radio on the gas prices increase in the European gas market.
In an interview with Sputnik radio, Aleksey Gromov noted that the situation that is currently observed in the European gas market confirms that during the autumn-winter heating season, weather conditions have a decisive influence on stock prices in Europe for natural gas.
The maximum level of gas prices will closely correlate with the climatic conditions of the upcoming winter, the expert predicts.
“We saw that against the backdrop of record filling of European underground gas storage (UGS) facilities, combined with an excess of liquefied natural gas (LNG) on the market and abnormally warm weather in October and in the first days of November, spot gas prices fell to their lowest levels in the past few months. Now the cold season has fully entered into its own, it has become colder in European apartments, the demand for LNG is growing markedly. This is reflected in price volatility. Previously, tensions in the European gas market were reduced by large volumes of Russian pipeline gas supplies at lower prices, today the price volatility, tension will persist," he said.
"As a rule, the coldest months in Europe are the end of January and February. If the long-term trend continues, these months will become the most expensive in terms of gas prices on the European market. Prices may return to the level of 2,500 thousand dollars per thousand cubic meters, possibly slightly higher at some peak moments," Alexey Gromov concluded.
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