European countries collided with an excess of gas. They stored more than they can use, Bloomberg reports with reference to market participants.
Due to the excitement purchases, some gas storages were crowded, and due to low demand for fuel due to warm autumn weather, the cost of “blue gold” falls. The price of gas futures even fell below $ 1000 per thousand cubic meters. However, experts warn that such a situation will not last long. The authorities expect a sharp increase in gas demand with the onset of cold weather.
“It is expected that the excess of gas in Europe will last at least until December. It is unlikely that Europe will encounter a long cold in November,” the leading analyst and senior meteorologist of the Italian energy company Illumia, Jakomo Masato, told the publication. As a result, raw materials can again take off in price.
Moreover, politicians do not exclude new sabotage with supplies that can extremely negatively affect the market setting.
The temporary nature of the excess is evidenced by the discrepancy in the price of setting gas futures in November and February. February is 44% more expensive, which may indicate the maintenance of risks with gas supply to Europe until the end of winter.
Experts emphasize that even with low energy prices, the key task of Europe remains the need for general reduction in energy consumption. Gas consumption must be reduced by at least 15%in order to successfully survive the heating season.