Gas prices are rising in Europe due to frosts and high demand
2022.12.01 03:26
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Gas prices are rising in Europe due to frosts and high demand
Budrigannews.com – Europe’s natural gas prices went up as a result of a cold wave that was expected to increase demand and put the region’s ability to prepare for the winter in the face of limited supplies.
Benchmark futures reached their highest level since October 13 by as much as 5.2%.According to Maxar Technologies Inc. and Marex, European temperatures will likely fall this month after a mild November, and conditions may be cooler than average.
Read: Europe’s energy systems will be challenged by a cold winter ahead. Russia cut off most piped gas flow over the summer, so Europe could be more vulnerable to supply shortages in the future.Although liquefied natural gas has contributed to filling reservoirs and replacing lost shipments, stockpiles are beginning to decrease.
This time of year, gas prices are four times higher than usual, which is driving up inflation and hurting economies.Germany is anticipated to have its first import terminals ready this month, and Europe has been attempting to accelerate the construction of infrastructure to receive additional LNG.
However, if a cold snap also strikes Asia, there could be a spike in demand and increased competition for cargoes, which could raise prices.
Due to a weak economy and rising international prices, China’s appetite for LNG has been limited for the time being. Since October, LNG imports have decreased by 22%.at 8:25 a.m. in Amsterdam, the European benchmark was 4.5 percent higher at €153 per megawatt-hour.
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