According to the expert, the cost of gas in Europe is declining for a number of reasons.
“First, there is no growth in demand from China yet, despite the lifting of coronavirus restrictions.
The second is the high occupancy of UGS facilities in Europe.
On average, storage facilities are 80% full, gas withdrawals were below expectations against the backdrop of a warm winter.
The third is LNG supplies at stable levels, although it was predicted that purchases from China would increase, but this has not yet happened.
The fourth factor is the consistently high levels of energy production by wind farms in Europe,” he explained.
As Deev noted, most likely, even despite the cooling in the EU, which is expected this week, gas quotes will not change much and will remain below $1,000 per thousand cubic meters.
“The large volume of reserves in UGS, the still suppressed demand from China, as well as the reduction in consumption by European industrial enterprises affects - some of them have reduced production and are planning to relocate to the United States),” the RT interlocutor emphasized.
Forecasts that in the winter season in Europe gas prices will rise to $2.5-4 thousand per thousand cubic meters, according to him, have not yet come true.
The analyst did not rule out that this could happen closer to the new heating season, when the storage needs to be filled again.
Earlier it became known that stock prices for gas in Europe accelerated the rate of decline to about 3% and for the first time since August 31, 2021 fell below $600 per 1 thousand cubic meters.
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