Gazprom expects gas prices to grow in Oct–Dec 2020, Jan–Mar 2021

MOSCOW, Aug 18 (PRIME) -- Russian gas giant Gazprom expects prices for natural gas to rise in October–December 2020 and January–March 2021 as forward contracts already indicate the price of U.S. $160 per 1,000 cubic meters in January, the company said in a statement on Tuesday.

Pricing on the gas market is seasonal, and prices usually grow in autumns and winters during the heating seasons and during consumption of reserves created in the previous summers. This year, traditional seasonal fluctuations were accompanied by a rapid contraction of consumption due to the coronavirus pandemic, the company said.

“This gives us reason to expect an increase of gas prices in the fourth quarter of 2020 and in the first quarter of 2021. For instance, the January forward contracts for gas show the level of about $160 per 1,000 cubic meters, while the current spot price stands at only $90 per 1,000 cubic meters,” the statement read.

The weather and the amount of gas stored underground will have a significant impact on prices, the company added.

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