Can the price of gas reach 2,000 dollars and does Serbia have reason to worry?

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Conflicts in Ukraine have currently affected world stock markets. First, oil crossed the psychological limit of 100 dollars per barrel, and then gas prices, along with reduced deliveries, jumped by 35% on the European market. Jelica Putniković, editor-in-chief of the “Energy of the Balkans” portal, pointed out that Russia has no competition and that Europe imports about 40 percent of gas and 30 percent of oil from Russia, and that if it were stopped, it would have problems. She assessed that Serbia has enough energy reserves and that, for now, there is no reason to worry.

Russia is one of the largest energy suppliers in the world. According to data from the CIA World Factbook, it is the second largest exporter of crude oil on the planet, after Saudi Arabia and the largest exporter of natural gas, far ahead of second-placed Qatar.

Jelica Putniković pointed out for RTS that Russia has no competition and that Europe imports about 40 percent of gas and 30 percent of oil from Russia, and that if that were to stop, it would have a problem.

“We saw as soon as these war situations in Ukraine started, gas prices rose on European stock exchanges, but then the price fell. We will see how it will go again. What is positive information is that it was announced from Russia that they will continue with deliveries. “, said Putnikovic.

He adds that they said from Europe that they are afraid that the price will rise. She estimates that, depending on the development of the situation, the price of gas could rise, which would endanger both the citizens and the economy, but she also hopes that in the end, as she said, everyone will sit down at the negotiating table.

Will the gas reach the price of 2,000 dollars

He says there was a kind of threat from Russia that gas in Europe could reach $ 2,000 per 1,000 cubic meters.

“It is a global market and it cannot be said now that only Europe buys gas and oil, prices are rising on the world market depending. First, it does not pay for Russia to suspend gas supplies. In Soviet times, in the Iron Curtain “It was the Cold War, the USSR never stopped exporting gas. Only during the Second World War did they not want to sell gas to Hitler,” Putnikovic recalled.

He hopes that this economic aspect will be predominant on both sides in relation to politics, because the most important thing is that people have fuel for heating for traffic, for transport.

Russia can turn to Asian countries

The Russian Federation has the world’s largest reserves of natural gas, they make up 24 percent of the world’s total reserves and are mainly located in Siberia. The data show that there will be no alternative to Russian gas in the next 10 to 15 years.

Putnikovic also states that everyone, by the way, announced that gas prices will fall a little when the heating season is over. However, the economy in Asia is strengthening and they have a growing need for gas that arrives in tankers, that is liquefied natural gas.

He believes that Russia could turn to selling its energy to China and other Asian countries. There are also Japan and India that have huge energy needs.

“Nobody says Nord Stream 2 won’t work”

She explained that Nord Stream 2 did not even work, which means that European buyers ordered gas from Russia on time last summer and filled the warehouses. There would be no story that there is a lack of gas and that Europe has a problem.

“Nord Stream 2 was built for security of supply in the coming period. And I think it has been prolonged until this crisis with Ukraine is over. Nobody says: that gas will never work.”

On the other hand, as he points out, not only Gazprom has invested in that gas pipeline, but also European companies, which means that it is a direct blow to the budget of their companies.

Does Serbia have reason to worry?

She pointed out that “Banatski dvor” is not full now, but that there are enough gas reserves.

“What I know, and it was heard from the officials, gas is imported to provide additional reserves, so that it is enough for heating. We do not supply through Ukraine, we have a route from Turkey. Additional quantities are also imported, we heard that “Additional financial resources have been provided so that we are not threatened by gas shortages. We are now waiting to see what the situation will be like when a new long-term contract is made,” Putnikovic said.

She added that we have oil for more than a month and a half and that it is simply a process that the EU is forcing us to do.

She stated that the countries of the European Union demand that there be oil in the tanks in 61 days.

“We haven’t reached that yet, but we have it in a month and a half. I will remind you that besides NIS, European companies have gas stations in Serbia and they already have access to crude oil supplies and can supply us with derivatives, so there is no reason to worry.” Putniković concluded, RTS reports.