azprom says European customers will pay $500 per thousand cubic meters by year-end MOSCOW: Gazprom chief Alexei Miller said Thursday that Europe will have to pay US$500 per thousand cubic meters of gas by year end, over a fifth more than what it pays now. (...) Miller added that if oil reaches US$250 per barrel, gas could soar beyond US$1,000 per thousand cubic meters. Oil surged through a record US$145 per barrel Thursday. At the end of June, Miller said European customers were paying an average of US$410 per thousand cubic meters, 50 percent more than the price they paid last year.
MOSCOW: Gazprom chief Alexei Miller said Thursday that Europe will have to pay US$500 per thousand cubic meters of gas by year end, over a fifth more than what it pays now.
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Miller added that if oil reaches US$250 per barrel, gas could soar beyond US$1,000 per thousand cubic meters. Oil surged through a record US$145 per barrel Thursday.
At the end of June, Miller said European customers were paying an average of US$410 per thousand cubic meters, 50 percent more than the price they paid last year.
No surprise, given that gas prices follow oil prices with a lag of a few months.
And, thanks to market deregulation, we have a highly "competitive" market that uses marginal prices to set wholsale prices, and with gas-fired plants being the usual marginal plant, electricity prices are now also following oil prices. Wonderful. In the long run, we're all dead. John Maynard Keynes
