Gas prices rose again on Wednesday due to colder weather across much of Europe, but also due to growing competition in the gas market from China. The latter has to do with the relaxation of the corona rules in the Asian country. As a result, the demand for fuel is on the rise.
On the main gas exchange in Amsterdam, the price rose more than 3% on Wednesday morning to 143.25 euros per megawatt hour of gas. It was already known that, especially in northern Europe, warming is picking up now that temperatures drop below zero. It will stay cold for the next two weeks as well, say the weather forecast.
Meanwhile, China is easing increasingly stringent corona measures, which also gives the Chinese more room for manoeuvre. This will also make China more active on the gas market, because the industry can now produce and transport more.
With the loss of gas flows from Russia due to sanctions against the country over the war in Ukraine and the backlash from Moscow, Europe has become more dependent on imported liquefied natural gas (LNG). It is precisely in this market that Europe will face increased competition. Also because temperatures drop in China and the demand for gas and coal increases. So far, more limited gas demand from China has served Europe well. Europe’s gas reserves are currently full. But the risk remains that a cold snap will quickly change that.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
