In June 2010, companies in the sectors manufacturing industry and energy paid 2 percent less for natural gas than in June 2009, whereas the oil price soared by 24 percent. These price developments underscore that the price of natural gas is not exclusively based on the price of oil. The price of natural gas is increasingly controlled by supply and demand on the global market.
Natural gas price barely recovered after slump in 2009
In the first six months of 2009, the price of natural gas dipped below the level of 2005 and subsequently improved to 10 percent above the level of 2005. The petroleum price reached a low at the end of 2008, but since then has improved substantially. In June this year, the price of petroleum was approximately 60 percent higher than in 2005.
Price developments petroleum and natural gas for sectors manufacturing industry and energy
Supply and demand have a considerable effect on price of natural gas
The price of natural gas is increasingly affected by supply and demand on the global market. Since 2005, natural gas can also be bought on the Title Transfer Facility, a virtual trading point for natural gas without a direct link to the oil price. This so-called spot market brings together supply and demand in Europe. The supply of natural gas on the global market is also growing. More natural gas is shipped from the Middle East and new, extensive natural gas resources have recently been struck in the United States.
Ria Smit and Otto Swertz