On Tuesday, the Energy Minister of the UAE, Suhail al-Mazrouei, said that low gas prices were not sustainable.
"Gas prices were not sustainable at USD2 or USD3. New investments need to be there. I am afraid it is not going to be magical. Prices will go through ups and downs until the market realizes the right price. The market will drive the price," he said.
He added that the recent price rally showed the market fundamentals and a lack of investment in the sector. The current level of prices, if continued, would burden many economies. In a long term, the market is not prepared to accept such prices.
Year-to-date, gas prices have soared by 280% in Europe and by more than 100% in the US. Factors floating the prices include low storage levels, carbon prices, and reduced Russian supply.
