Commodity Prices Gas Prices in Europe to Increase Significantly
Gas prices in Europe are expected to rise significantly, despite a contrary tendency in the US. The fear of a global recession, sovereign debts and unsettled disputes in the Middle East affect a highly volatile commodity market. In early January, the oil price climbed to its highest value since November 2011.
Crude oil prices saw a slight relaxation for December. Now, with tension tightening in the Middle East and a EU oil embargo on its way, make a rising crude oil price very likely. During the first days of January 2012, the price for Brent reached its highest level since November 2011, analysts say. Apart from rising prices, also the global economic slowdown and an ongoing sovereign debt crisis in the EU dampen the demand for oil and petroleum products. Analysts expect a crude price of about 110 US $ per barrel for the first quarter of 2011 (within an accuracy range of 15 US $).
The IKB expects significantly rising gas prices in Europe independent of the prices on the US market within the the next months. Exchange rates are still under pressure of the fear of recession and the debt crisis in the EU - IKB analysts expect the Euro to be at around 1.25 to 1.35 US $ during the first quarter of 2012.