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Also, gas providers filled up storage and secured volumes at high prices. Even if they now buy for way less, customer prices will be an average (at least, depen

by hef19898 4y ago

Also, gas providers filled up storage and secured volumes at high prices. Even if they now buy for way less, customer prices will be an average (at least, depending on exactly how providers calculate costs and thus prices) of those two. So until the old inventory is consumed, consumer gas prices won't move a lot. Overall, this is good. As a consumer you want stable prices and not depend on spot and future markets fluctuations.

jandrese 4y ago
This is a classic market shock panic buying. Something newsworthy happens that will reduce the availability of some commodity rising prices slightly, the reaction is that people start trying to stockpile the commodity which further stresses the market and drives prices even higher, fueling more fears about shortages, and so on. Then the storage fills up and it wasn't really that big of a shortage in the first place so the demand utterly collapses. It's the same thing that happened to toilet paper back in early 2020. I only hope this accelerates the transition to renewable energy sources in Europe.