Expert: European industry will not withstand such gas prices


20 August 2022

Gas prices in Europe this winter may exceed $4,000 per 1,000 cubic meters, according to Gazprom. As noted in the forecast posted on the company's Telegram channel, «gas prices have broken through the $2,500 mark on spot exchanges in Europe. According to conservative estimates, if the trend continues, prices will exceed $4,000 per 1,000 cubic meters in winter».

 On the air of Sputnik radio, Yury Rykov, head of the sector of the energy department of the Institute of Energy and Finance, noted that the upward trend in prices on spot sites is quite stable. «Gas has already risen to four thousand dollars, however, for a short time», he recalled.

 In his opinion, it is possible to predict prices on stock exchanges only very approximately.

«Usually, when prices rise, it includes other factors that can change the situation … In general, it can be said that since gas, apparently, will not be enough, there will be a serious rise in prices by winter. But since at this moment problems with European industry will begin, demand will begin to fall and various options (price movements) are possible», Yury Rykov explained.

 Already at three thousand dollars per thousand cubic meters, the European industry will face serious problems, the expert believes.

 «If this situation continues, then, in my opinion, a recession in Europe is inevitable, and the industry will begin to decline, because most likely they will not be able to withstand such prices», Rykov said.