Federal Finance Minister Christian Lindner (FDP) expects that the very high gas prices in Europe will fall again.
“We assume that in the foreseeable future – 2023 – we will experience normalization, not at the old level, but at the level of the world market price for liquid gas,” said Lindner at an event, according to the news portal “The Pioneer”. The gas price will then “still be challenging”, but “not ruinous”. It is now a question of building a bridge “towards a new normality of increased energy prices”.
Lindner defended the state entry into the gas importer Uniper. “We have companies that we protect from bankruptcy, from collapse, because behind it there may be a development like Lehman,” he said at the news portal’s event. With the bankruptcy of the US investment bank Lehman Brothers in 2008, a real estate bubble in the US turned into a global financial crisis.
European gas price rises after Putin announcement
After the announcement of partial military mobilization in Russia, the price of European natural gas rose again on Wednesday. The already uncertain prospects for Europe’s gas supply in winter are thus becoming even more uncertain.
In the morning, the price of the TTF futures contract for Dutch natural gas rose by around nine percent to around 213 euros per megawatt hour. The TTF contract serves as a guideline for the European price level. The price had tended to fall since mid-September, albeit from a high level.
Oil prices are also rising
The price of oil also reacted to the latest developments: around noon, a barrel (159 liters) of North Sea Brent cost $92.76 – $2.14 more than the day before. The price of a barrel of US West Texas Intermediate (WTI) grade rose $2.12 to $86.06.
The market fears a further escalation in Russia’s war of aggression against Ukraine as a result of Putin’s measure. Prior to this, oil prices had been falling for some time on expectations of weak economic activity in many major economies.
