BAKU, Azerbaijan, May 14. Threats to cut off Russia’s gas supplies grow, which causes European natural gas prices increase further, Trend reports via Capital Economics, UK-based research and consulting company.
Gas prices in Europe have declined over the recent weeks, however, the latest issues with Russia’s sanctions on European energy companies, and the disruption of Russian gas transit through one of the major points in Ukraine, have negatively affected the market. Meanwhile, the interruption of Ukrainian transit can cause up to 10 percent of gas supplies reduction to the EU.
According to the report, currently, the reaction on the price change is rather quiet, probably due to the seasonal low demand in natural gas.
However, all signs indicate that this will lead to a decrease in supplies from Russia to Europe, which will complicate efforts to restore stocks and help keep prices high, the report noted.
“A complete stop of Russian gas flows would have significant effects on the region given the high share of gas use in industry and energy generation and the current low levels of gas stocks,” Capital Economics added.
Meanwhile, according to the latest data (May 13, 2022) from Capital Economics, the price for US natural gas amounted for $7.60 per mBtu.
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