EIA: gas prices in the world to grow by the end of the year

​Gas prices will come to the norm and will seriously grow by the end of 2016 –beginning  of 2017, the head of the Energy Information Agency of the US Ministry of Energy, A. Seminsy, said.

He explains his assessment by the fact that the demand of the world industry in gas is growing now. In winter a seasonal growth of prices for energy products is unavoidable.

We will see the growing gas price by the end of the year. It will be winter, in winter gas price is always higher. We see that the gas price is again growing not only because of that, but also because there is a higher demand from the industrial sector, higher demand for fertilizers and other products which are made of natural gas, Mr. Seminsky said.

According to him, gas price rise will not be endless. Gas price is likely not to exceed the rates of 5-10 year ago. The analyst said that the level of demand and offer for gas are currently becoming equal.

In mid December 2015 the gas price in the USA fell to the minimum of this century - $1,797/thousand BTU. In America such a low price was in 1999. Later the weather became cold in the USA and gas prices returned to the affordable level.