Gas prices snapped the sharpest decline since 2009 and began to grow amid the fears that tense relationships between Russia and Ukraine may lead to intermissions of fuel supply, Bloomberg informs.
Gas futures for the next month delivery have risen 21% over the last six month in London trade.
According to the results of the trading session held on August 18th, gas prices in the UK were up to 42.65 pence per therm (7.1 dollar per million of British thermal units). The agency presents the forecast, according to which the prices for gas in London will grow to 64 pence per therm in the 4th quarter of 2014. On August 18th, gas futures contract for 4th quarter delivery was 57.85 pence per therm.
At the beginning of July, gas prices were falling for the reason of sufficient quantity of fuel in the EU gas stocks after mild winter. At present gas prices are growing because of tensions between Moscow and Kiev. The EU worries that Ukraine may halt Russian gas transit through its territory. At this situation the EU makes an attempt to find new suppliers. As an alternative, it is offered to enhance fuel import from Norway.
On August 8th, Ukraine prime-minister Arseniy Yatsenyuk stated that Russian gas transit through Ukraine territory can be intermitted. The head of the Ukraine ministry assumes that such an action “will put a point” in thorny issue of gas dependence from Russia. On august 11th, Germany required Ukraine to refuse from the idea of Russian gas transit blocking.
On July 16, Gazprom has made a decision to transfer Ukraine on prepayment system of gas supplied due to debts. From this moment the volume of gas deliveries is restricted by the European transit, and Ukraine cannot consume the gas for itself.
