The upcoming winter coupled with continuous Russia-Ukraine tensions has been pushing the price for gas higher. Since the current geopolitical conditions and a predicament in East Europe threaten stable supplies, the Russian gas price stopped its falling. Interestingly, just recently the price of the gas from Russia hit its lowest level over the last five months. However, over the latest fortnight the price of gas futures for delivery in autumn rose by 21% on the LSE. Even though in July the Russian gas could be bought at its lowest price since 2010, the European storages remained full after a warm winter. This was the record amount of gas in Europe since 2008. However, the situation in Ukraine could be better. According to official data, presently, the Ukrainian gas storages are not even half-full, so the government has had to pass to an economic mode of consumption. After Gazprom has introduced prepayment for gas supplies to Ukraine, no gas has been bought. Analysts at Societe Generale expect the average gas price in London to pop to 64 pence in the fourth quarter.
