Russian gas prices in Europe will stay at record highs until the end of the year, owing to cold winter temperatures, according to experts contacted by Izvestia. Apart from that, Russian gas remains in high demand due to its environmental friendliness and the absence of other significant suppliers.
“The quantity of gas in Europe’s underground storage facilities is now at a historic low of 20%. This has sounded the alarm in Europe, and record high gas prices in the area may continue until the end of the year “, according to Andrei Loboda, a financial communications specialist. He thinks that Russian gas prices in Europe may reach $900 by the end of the year. Such a surge is unlikely to persist long, although it is conceivable in the event of cold winter conditions.
The shortage of LNG supply is what defines the scenario on Europe’s gas market, according to Igor Yushkov, Chief Analyst at the Moscow-based National Energy Security Fund. Gas prices in Asia are higher than in Europe, and LNG producers choose to sell gas in Asia, while Europe is experiencing supply problems.
If prices decrease in Asia, they will fall in Europe, although there is no evidence of this at the time. Gas consumption in Asia continues to rise, and there will be no spare fuel for Europe, according to Yushkov.
Because Russian gas is more ecologically friendly than oil and coal, it will stay in demand until gas reserves run dry, thus demand for gas in Europe will only increase as European businesses grow more environmentally conscious, according to Gold Coin House expert Dmitry Golubovsky.
Because marine transit may be disrupted by storms, while pipelines are dependable, the area needs cheap ecologically friendly gasoline and regular supply, according to independent expert Vasily Suvorov.
