Gas prices on the world market may triple more – analytics

Almost $ 1000 per thousand cubic meters – this may be far from the limit of the price for blue fuel. Analysts at Citigroup (USA) predict a rise in gas prices to $ 3000 per thousand cubic meters by the end of this year.

“Liquefied natural gas prices are skyrocketing as low seasonal stocks in Europe, skyrocketing demand in China and limited supply from Russia have led to a “war of claims” for raw materials needed to generate electricity in the Northern Hemisphere. This month, prices in the Japanese and South Korean markets have jumped almost 50% to about $ 960 / thousand. cubic meters, while in Europe LNG prices increased by about 40% and approached $ 800 / thous. cubes“, – said in the explanation of Bloomberg.

Prices will fall after winter

Citigroup said in a note that if there is an unusually cold winter and demand picks up, and hurricanes in the US Gulf of Mexico disrupt fuel supply and trade, then the price increases could be permanent.

“In the coming weeks and months, world natural gas prices may continue to rise parabolic. Strong demand and lack of response from the supply side dramatically dragged on the market. Any unexpected surge in demand or supply disruptions could lead to further price increases. However, prices could fall by 70% by the third quarter of next year after the end of winter.“, – say analysts at Citigroup.

Market situation

• In early September, the price of gas on the European futures market exceeded a record $ 700 per thousand cubic meters. And in August, the gas price for Europe set a record for three and a half years – from the beginning of March 2018.
• Fitch Ratings predicts further growth in natural gas prices for 2021-2022 in Europe.