Quotations of the Ukrainian Energy Exchange show a decline in energy prices in 2020. Thus, exchange quotations (overpayment) of the May resource are currently 41% lower than similar values of the January 2020 resource.
On May 7, UEEX sold natural gas at the lowest price ever - 2840 UAH per thousand cubic meters, including VAT.
Today, the natural gas price is influenced by several factors at the same time: a warm winter, due to which record natural gas reserves have been accumulated in storage facilities, the early start of the gas injection season, a drop in demand for gas, which was provoked by the industry stop due to the COVID-19 and others. Thus, both European and Ukrainian markets are overflowed of natural gas, which is the result of discrepancy between supply and demand for the resource.
Under the conditions of low prices, the activity of producing companies in exchange trading decreased in favor of traders. On the other hand, in 2020 GDM operators started purchasing natural gas for the production and technological costs of natural gas in the grids at exchange trading, which contributed to a significant increase in trading volumes at UEEX in the context of the general market downturn. Thus, in 2020 GDM operators have already purchased more than 1,2 billion cubic meters of natural gas resources of January 2020 – April 2021 on exchange trading.
«Now we see the same problems in the Ukrainian market of natural gas as in Europe. The oversaturation of reserves in storage facilities and the reduction of industrial use in the current market conditions led to a price reduction. So far, we do not see any potential for significant price growth in the near future, but the overall activity of the participants of exchange trading on UEEX shows positive dynamics» - CEO of UEEX Oleksandr Kovalenko commented the market situation.