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每日时讯英文阅读:PRICE OF NATURAL GAS IN EUROPETO DOUBLE ON BACK OF OIL SPIKES

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PRICE OF NATURAL GAS IN EUROPETO DOUBLE ON BACK OF OIL SPIKES

By Ed Crooks in London

Wednesday, July 16, 2008

The price of natural gas in continental Europe is to double in the space of a year as a result of the rise in oil prices, according to a leading consultancy.

Such a rise would put a further squeeze on hard-pressed European consumers and businesses, and add to the upward pressure on inflation in the eurozone, which has been estimated at 4 per cent in June.

It would also stoke concerns about the prevalence in continental Europe of long-term contracts for gas supply, which link the price to the cost of oil products such as heating oil.

European gas prices typically follow the price of oil with a lag of about nine months, so if the price of crude oil remains at record levels, the future price of gas can be calculated with a degree of confidence.

According to Cambridge Energy Research Associates (Cera), a US-based consultancy, the rise in the oil price from about $70 a barrel a year ago to about $140 today will result in the gas price rising from about $350 per thousand cubic metres at the start of the year to about $730 by April 2009.

 


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