Deputy Director of the Russian Center for Energy Economics, Sergei Kolobanov, said that a number of factors such as weather, austerity measures, and consumers’ sense of some confidence in energy resources led to lower gas prices.
Kolobanov explained that the sudden rise in gas prices in Europe last year was due to expectations and fears of gas shortages in the future, especially in winter, noting that current gas prices are linked to supply and demand factors in the market.
According to the Russian expert, many positive factors have come together in the European gas market, which led to a drop in its prices, including the austerity measures taken by some European countries, the decrease in gas consumption in the region, and the warm weather in the past winter and spring allowed the Europeans to maintain reserves. Great gas stores.
The Russian expert did not rule out that gas prices would fluctuate again and might double, explaining that the potential for LNG production in the world did not increase significantly over the past year, and therefore with the increase in demand due to economic growth in Asia, prices may rise again.
It should be noted that the prices of gas futures contracts for the month of June recorded a decrease last Thursday, and fell to less than 300 dollars per thousand cubic meters, for the first time in two years.
This article was originally published by RT.
