Raw materials: Why gas has become significantly more expensive in Europe than in the US
Energy prices are fluctuating extremely: They have recently fallen after a strong increase in July. In Europe and the USA, gas prices are diverging. This has to do with storage and algorithms.
Frankfurt - The prices of commodities, particularly gas and oil, have experienced a significant decrease in early August after sharp increases in July. Market participants are hopeful that an agreement to reopen the Hormus Strait will be reached soon. European gas prices have dropped by nearly eight percent since Tuesday, while oil prices have also declined substantially.
Brent, a North Sea oil variety, has fallen by around four percent since Tuesday and briefly dropped below the 80-dollar mark. Arne Lohmann Rasmussen, an analyst at Global Risk Management, a Danish firm specializing in energy price risks, predicts that oil prices could potentially fall to the mid-70s or even the low 70s if an agreement is confirmed.
He considers this a very attractive entry point, given that summer showed how fragile any agreement between the US and Iran is. The previous ceasefire between the US and Iran lasted less than a month, and its end on July 8 led to a significant rise in commodity prices, with the Goldman Sachs Commodity Index (GSCI) increasing by over twelve percent. Interestingly, the same commodity that won and lost in July benefits primarily US companies.
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