Gas prices fall from record high after Russia steps in

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UK Gas prices fall from a record high after Russia steps in to calm the market.

Wholesale gas prices across the UK and in other European countries had hit record highs. The market seems to be calming now. Prices fell in the UK after Russia stepped in. Vladimir Putin the Russian president has intervened. Russia is set to increase supplies of gas to Europe.

On Wednesday, October 6, prices rose by nearly 40 per cent in only 24 hours. The UK saw gas prices drop dramatically though after Mr Putin said Russia will step in.

Many firms in the UK have been hit hard by wholesale gas prices. Production has halted in some industries and more than one UK energy firm has folded.

Senior investment and markets analyst at Hargreaves Lansdown, Susannah Streeter commented on how the price changes in the gas market highlight the “volatility in the market and the nervousness amongst investors about low stockpiles of gas across Europe.

“When Putin’s promises help calm the storm of rising prices which was pummelling financial markets, it’s clear investors are desperate for any gust of good news blowing in.”

Danni Hewson is a financial analyst for AJ Bell. Hewson commented: “News that Russia will boost gas supplies has steadied market nerves a little this afternoon and helped temper those record price hikes but businesses are worried, and investors are too.”

Rising gas prices have hit connected industries such as companies that produce carbon dioxide. This is vital to the production of food in the UK and last month two UK sites closed. The government decided to step in though and subsidise the CF Industries’ plants in Teesside for three weeks.

A spokesperson for the Department for Business, Energy and Industrial Strategy stated: “We are determined to secure a competitive future for our energy intensive industries and in recent years have provided them with extensive support, including more than £2 billion to help with the costs of energy and to protect jobs.

“Our exposure to volatile global gas prices underscores the importance of our plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels.”


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Alex
Written by

Alex Glenn

Originally from the UK, Alex is based in Almeria and is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]

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