Gas Prices Fall After Putin Promise to Supply More Gas

Gas prices fell during the day on Wednesday following comments from Russian President Vladimir Putin. It was prepared to increase deliveries to Europe for the coming winter, now that there are global concerns about the supply.

 

According to the standard for European gas prices, the price of a so-called megawatt-hour of gas rose to above 180 dollars earlier on Wednesday. However, after Putin’s statements at an energy meeting in Moscow, prices fell to around 125 dollars.

Putin said gas sales to Europe could hit a record. Critics have previously accused Russia of blocking gas deliveries. Russia contradicts that. The limited supply from Russia is cited as an important factor for the rise in gas prices.

Continued strong demand, limited supply on the gas market and the expectation of colder weather in the northern hemisphere led to gas prices soaring to record highs in recent days. In two days, prices in the European market rose by 60 percent, after which Putin talked prices down.

According to the Russian president, the gas crisis shows that European authorities have made mistakes. Putin blames the transition to green energy and low investment in extractive industries. The Russian also previously criticized “unbalanced decisions” and “drastic steps” to achieve sustainable goals.

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