Gas prices up sharply as inventories drop

Gas prices in the world markets are soaring again. On Monday alone, January’s delivery contracts jumped 11 percent. There are several reasons. Among them, among others low stock levels in European warehouses, but also announcements by representatives of the new German government. There will be only one effect: it will become more and more expensive.

European warehouses are currently filled with gas to only about 62 percent. This time of year it should be at least 10 percentage points. more. Hence the significant increase in prices.

The Financial Times writes about the situation on the gas market. We read in it, among others on the announcements of the new German Foreign Minister Annalena Baerbock, who presented a new position on Nord Stream 2.

As she stated, all investments in this sector of the economy will have to be in line with the EU energy policy. And Nord Stream 2, in her opinion, does not meet such criteria at the moment, so it still cannot receive a permit to operate.

At the same time, European warehouses are filled with gas only in 62 percent. “FT” points out that in winter they should be at least 70% full, so the current level of stocks is insufficient. And this causes prices to rise.

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