Gas prices predicted to drop below zero

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www.vsyako.netPhoto: Issei Kato / Reuters

On the background of overflow storage of gas prices on European markets could fall below zero. This possibility has predicted the number of confirmed traders and analysts polled owned by Grigory Berezkin edition RBC.

On Friday, may 22, at the biggest European hub, the Dutch TTF, liquefied natural gas (LNG) in terms of after relaticely traded at 26.4 dollars per thousand cubic meters, which was a historical minimum of the site.

On the hub in Baumgarten, closest to Russia, gas prices dropped to 49.7 per dollar in the border areas of Russia, they are about $ 60.

Professor of the Paris Institute of Sciences Po, a specialist in gas market Thierry Bros pointed out that the most likely care gas prices in negative values on the British hub NBP. However, in the case of TTF, this situation is not excluded.

The problems in the economy because of the pandemic coronavirus led to a sharp drop in demand for gas. Due to the abnormally warm winter in Europe and increasing supply of LNG from the Qatar gas storage facilities in Europe are filled to 70 percent. Traditionally the summer period place in them much more. So, a year ago was filled 56 per cent.

The situation threatens the income of “Gazprom”, since 57 percent of the long-term export contracts for gas are tied to the prices on European exchanges. The company is reducing deliveries in the EU since March, the average price this month was $ 125 per thousand cubic meters. However, points Bro, this tactic may not work as you grow the supply of LNG from Qatar. In total during the first quarter, the Russian export monopoly for the first time in history we have loss, it amounted to 306 billion rubles. In physical terms, gas sales fell by a quarter to 46.6 billion cubic meters.

Video, photo All from Russia.

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