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Factors behind the drop in gas prices in Europe explained by Russian expert
Sergei Kolobanov, deputy director of the Russian Center for Energy Economics, said a number of factors, such as the weather, austerity measures and consumer confidence in energy resources, have led to lower gas prices.
Expectations and fears of shortage caused sharp increase in gas prices in Europe last year
Kolobanov explained that the sharp increase in gas prices in Europe last year was caused by expectations and fears of a shortage of gas in the future, especially in winter, noting that current gas prices are related to supply and demand factors in the market.
Positive factors converged on the European gas market
According to the Russian expert, many positive factors converged on the European gas market, which led to a drop in its prices, including:
- Austerity measures taken by some European countries
- A decrease in gas consumption in the region
- Warm weather last winter and spring allowed the Europeans to keep their reserves. Excellent gas reserves.
Gas prices may fluctuate again and could double
The Russian expert did not rule out that gas prices would fluctuate again and could double, explaining this by the fact that the potential for LNG production in the world has not increased significantly over the past year, which means that with an increase in demand due to economic growth in Asia, prices may rise again.
Gas futures prices for June fell below $300 per thousand cubic meters for the first time in two years
It is worth noting that gas futures prices for June recorded a decline last Thursday and fell below $300 per thousand cubic meters for the first time in two years.