BLBG: Gas Prices Should Be Driven by Market Fundamentals
Natural-gas pricing should be driven by market fundamentals as a decoupling from oil will happen, according to the chief executive officer of the Amsterdam Power Exchange APX BV.
“The price of natural gas should have its own dynamics,” Bert den Ouden said today at a conference in Amsterdam. Prices will be determined by the market and liquefied natural gas hubs are needed to move away from long-term oil-linked contracts common in the gas market, den Ouden said.
The global recession, and especially the sovereign debt crisis in Europe, led to a “decoupling” between prices for oil and natural gas, Qatar Energy Minister Abdullah bin Hamad al- Attiyah said Nov. 1.
Natural-gas prices fallen 24 percent this year while crude oil futures have risen 2.8 percent over the same period on the New York Mercantile Exchange.
To contact the reporter on this story: Fred Pals in Amsterdam at fpals@bloomberg.net
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