Gas in Europe has become 1.5 times more expensive than oil

Analysts note that gas on the European market has become 1.5 times more expensive than oil due to low reserves in underground gas storage facilities (UGS). The price of the October gas futures broke another record, reaching $660 per thousand cubic meters (or about $110 per barrel of oil equivalent). At the same time, the price of November Brent oil futures fell to $72 per barrel.

The low gas supply in gas storage facilities was caused by a cold winter a year ago and a hot summer in 2021. There is now 10-15 billion cubic meters less gas in European storage facilities than there should be for a comfortable passage of the winter season. Moreover, Gazprom is in no hurry to increase gas injection into storage facilities or increase sales on the spot market on the eve of the launch of Nord Stream 2.

Experts note that last year gas prices were record low, and now they are record high, so it is unlikely that the gas market will remain stable at record levels. Moreover, such high prices may negatively affect the global economic recovery.