BAKU, Azerbaijan, June 27. Russia’s natural gas supplies to Europe will flow, however, the reductions are expected to continue due to the ruble payment issues, Trend reports via Fitch Solutions.
“The constantly deteriorating gas flows from Russia to Europe is the predominant driver of prices at present, and we continue to emphasize the high volatility as Russia unilaterally reduces flows through all routes,” the report said.
Meanwhile, Fitch Solutions expects gas prices in 2022 at around 225 pounds per therm, which is an increase, compared to the last quarter's forecast of 192 pounds per therm.
“NBP [National Balancing Point] prices, which had enjoyed a period of relative stability around 150 pounds per therm, have risen sharply and we are neutral-bullish from the spot,” the report said.
“Rising European gas hub prices have in turn dragged up Asian spot LNG prices, with Asia in close competition with Europe for LNG cargoes. Most liquefaction facilities are running at or near their operable capacity and there is little slack in the system left to offset any significant losses from Russia. As such, we see the balance of risk to this forecast squared increasingly to the upside,” Fitch Solutions added.
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