MOSCOW, July 11 Interruptions in gas supplies and sanctions on “transshipment” of Russian LNG through European ports increases the potential volatility of gas prices in Europe, said BCS World of Investments stock market expert Evgeny Mironyuk, commenting on the decline in gas prices on the European exchange.
On Tuesday, exchange prices for gas in Europe fell below $350 per thousand cubic meters for the first time since May 20. On Wednesday, gas prices continued their downward trend.
«Gas prices remain susceptible to supply disruptions, such as from the North Sea region, which temporarily boosted prices earlier this year. This, along with sanctions on Russian LNG «transshipments» through European ports, which can affect the volume of supply in the European gas transportation system, increasing the potential volatility of gas prices,” the expert noted.
In addition, UBS analysts assume that world gas prices will rise due to tightening fundamental indicators of supply and demand, Mironyuk added. They also note interruptions in supplies from Norway (including the North Sea), Australia, and a reduction in natural gas production in the United States, he continued.
«It is indicated that global LNG demand growth will remain below the pre-crisis five-year average of 7%; in 2024, UBS predicts that it will increase by only 1% in 2024 and 5% in 2025,» the source noted. agencies.
This year, the trend of slower growth in LNG purchases will support natural gas prices, he said.