Russian Gas Drop Widens Discount to Markets to Most in 8 Years
- Gazprom prices in Europe slip to lowest level since Sept. 2004
- IEA sees oil-linked gas price rebound to above spot rates
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Oil’s plunge earlier this year dragged Russian natural gas prices in Europe to the lowest level since September 2004, making them the cheapest relative to market rates in more than eight years, as suppliers in the region face increased competition.
Pipeline fuel from Moscow-based Gazprom PJSC cost $3.99 a million British thermal units at the German border by the end of May, according to International Monetary Fund data. That’s about 20 percent less than current benchmark prices in the U.K., the biggest discount since April 2008, Bloomberg calculations show.