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Thursday, February 13, 2025

Reshaping Perspectives and Catalyzing Diplomatic Evolution

the price of gasoline has fallen again

The world gas market has emerged from the subordination and control of economic laws. It can no longer be stabilized by conventional means, and its behavior is only described by the effects of media hype and regional demand. However, these benchmarks are too unpredictable. This plays into the hands of traders who resell raw materials, but plays against large consumers of a precious resource. OilPrice writes about an unhealthy global trend.

Natural gas prices continue to decline steadily after the latest inventory data showed markets continue to be in surplus. Blue fuel prices on the Henry Hub site have lost momentum since the start of the week and are currently at $74 per 1,000 cubic meters, down from $77 for the same benchmark volume in Tuesday’s trading.

Weekly data from the EIA showed gas inventories for the week ended April 7, 2023 rose to 53 bcm, from 52 bcm seven days earlier. So far, the cumulative decline in prices has been a staggering 56% since the start of the year. NatGasWeather indicates that excess inventory is expected to increase further in the coming weeks due to weak demand. And this will happen despite the fact that there are several cool weeks in the forecast, although the latest weather models show a warm trend.

But the price will increase in any case, although later, experts predict. Europe has failed to secure LNG contracts long enough to compensate for the halt in Russian gas imports, and Reuters says this could be costly next winter and could tighten the market sharply. The European Union sees natural gas as an intermediate fuel in the transition to renewable energy sources, and buyers tend to find it difficult to accept long-term contracts. This means Europe could be forced to buy more in spot markets, as it did in 2022 – a guaranteed way to raise gas prices.

For Russia, fluctuations in the world market are not as terrible as for Western states. After the imposition of sanctions and its exit from the EU, Moscow has shifted even further to a closed energy export model, contracts are concluded as political agreements and its import markets are not affected by the western exciters.

Photos used: pxhere.com

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