In October, the average cost of gas futures (next month) was $455.9 per thousand cubic meters. This is $40, or 9.6%, higher than the September index – $415.9, but about $60, or 24%, lower than the October index of last year and lower than the November index – $511.3 per thousand cubic metres. By the end of October, for the first time since December 1 of last year, these prices exceeded the limit of $485 per thousand cubic metres.
Experts noted that prices rose last month amid uncertainty about supplies from Russia – whether via pipelines or liquefied natural gas.
The average gas exchange rate in Europe last year was about $460 per thousand cubic metres. In the first half of this year, prices have largely stabilized, averaging about $310 in the first quarter and about $355 per thousand cubic meters in the second quarter, which corresponds to the level of May-June 2021 – the beginning of the rapid rise in gas. Prices in Europe.
Meanwhile, at the end of February this year, the gas exchange rate briefly fell below $250 per thousand cubic meters for the first time in nearly three years.
In 2021-2022, gas prices on the European stock exchange were noticeably higher. Such high prices have never been recorded in the entire history of the operation of gas centers in Europe – since 1996. Prices reached a historical record of $3,892 per thousand cubic meters in the early spring of 2022, and began to decline in the fall of the same year.
Source: Novosti
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**Interview with Energy Expert, Dr. Elena Reyes**
**Interviewer:** Thank you for joining us today, Dr. Reyes. The recent spike in natural gas prices, particularly the average cost of gas futures reaching $455.9 per thousand cubic meters in October, has raised some eyebrows. What do you think is driving this increase?
**Dr. Reyes:** Thank you for having me. The rise in gas prices can be largely attributed to ongoing uncertainty surrounding Russian gas supplies. The fluctuation between pipeline deliveries and liquefied natural gas remains a significant concern in Europe, which directly impacts market confidence and pricing.
**Interviewer:** It’s interesting you mention uncertainty; last year’s price averages hovered at about $460. Do you believe that the current prices, while lower than they were at their peak in early 2022, reflect a stabilization or just a temporary dip amidst ongoing volatility?
**Dr. Reyes:** That’s a crucial question. While prices are indeed lower than last year’s spikes, we should be cautious. The fluctuations indicate that we are in a highly reactive market. Any disruption to supplies could send prices soaring once more. Thus, I would argue it’s a temporary stabilization rather than a full resolution to the issues at hand.
**Interviewer:** With the expectation that the EU Natural Gas TTF might trade around 40.98 EUR/MWh by the end of this quarter, some are optimistic about price stability. What’s your take on this forecast?
**Dr. Reyes:** It’s a delicate balance. That forecast might reflect certain analyst confidence, but remember that gas markets are incredibly sensitive to geopolitical developments, especially with winter approaching when demand typically increases. If supply challenges arise, we could see prices shift dramatically again.
**Interviewer:** This paints a rather uncertain picture. Do you think Europe’s reliance on Russian gas could lead to more significant long-term consequences for energy security, especially with this volatility?
**Dr. Reyes:** Absolutely. The dependence on a single supply source poses risks not only for pricing but also for overall energy security. Europe needs to diversify its energy sources and invest in alternatives to mitigate future risks. It raises an essential question: Should Europe accelerate the transition to renewable energy to reduce its reliance on imported fossil fuels?
**Interviewer:** That’s a compelling point, Dr. Reyes. How do you think consumers are reacting to these fluctuating prices, and what implications might this have for wider public debate on energy policies?
**Dr. Reyes:** Consumers are understandably concerned, as these price increases impact their daily lives. The debate around energy policies will likely intensify, as citizens call for greater transparency, stability, and investment in sustainable alternatives. It forces us to rethink our overall energy strategy—both in terms of resilience and sustainability.
**Interviewer:** Thank you, Dr. Reyes, for shedding light on this complex situation. It seems we have much more to consider as winter approaches.
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**Discussion Question for Readers:** With the recent gas price fluctuations and ongoing geopolitical tensions, do you believe that Europe should prioritize diversifying its energy sources and investing in renewables to ensure energy security, or is there also merit in maintaining relationships with traditional suppliers like Russia? Share your thoughts!
