Gas Price Collapses by 12%, Does Not Reach $2000

Image credit: EPA

On Wednesday, the gas price set several records at once, increased by 15% by 11:00 Moscow time, to $1604 per thousand cubic meters. Half an hour later, the rise in gas prices per day reached $500, or 38.6%, to $1940.

However, immediately within a few minutes, the quotes of the contracts collapsed to $1679. The source of intervention in the market, which brought down the price, has not yet been named. But the gas price is still 19% higher than the day before when the previous record of $1400 was set.

The European Commission believes that unfavorable market conditions are the cause of the energy crisis in Europe. They led to an 8-fold increase in prices since the beginning of the year and an hourly renewal of gas price records, Deputy Chairman of the European Commission Frans Timmermans said.

“It’s all about market conditions,” he said. Therefore, the EU will carry out a gas reform, and in a week will present an action plan.

According to Gazprom Export, the price of gas rises with the start of the heating season in the EU on October 1, a drop in production in the EU, an increase in gas demand in Asia, and the need to fill underground storage facilities in the EU.

Gas prices in Europe will begin to decline by spring, European Commission President Ursula von der Leyen added.