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The gas price in Europe has broken a historical record


September, 13 2021
watermark Economic news

The cost of gas on the European market has set another record, for the first time in history exceeding $750 per thousand cubic meters. The price of «blue fuel» broke the previous record in the previous trading session on Friday, when gas rose to $710.


Analysts suggest that the price increase was facilitated by the policy of the European regulator, which focused on exchange mechanisms in determining the value. Moreover, gas in Europe is becoming more expensive due to a decrease in the level of reserves in underground gas storage facilities (UGS). The current occupancy rate of gas storage facilities is 70.45%, which is 15.5 percentage points lower than the average for the last five years.


In addition, in August, gas supplies to Europe were reduced for several days in a row after the accident at the Gazprom plant in Novy Urengoy. Also, the increase in cost is due to the fact that Gazprom does not intend to significantly increase pumping and sales against the background of the launch of Nord Stream 2.


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