On the Situation in the Global Oil Market

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Gas pricing mechanisms in the world, including for gas of Russian origin, are formed based on global gas and petroleum product prices.

Global gas markets have their key pricing benchmarks. There are several benchmarks, two of which are primary:

1. American market (Henry Hub):

- Current price: correction on Monday to 4.1 USD per million BTU (British Thermal Units).

2. European market (TTF):

- Current price: increase to 335 USD per 1000 cubic meters.

1. Henry Hub - American gas. This is actually the Henry Hub gas distribution hub in Louisiana. This benchmark plays a leading role in shaping natural gas prices in the US, which are traded on the New York Stock Exchange. The unit of measurement is British Thermal Units (BTU). To convert the price into an equivalent of 1000 cubic meters, a coefficient of 35.8 is used. It is important to note that this price reflects the pure cost of raw materials, without taking into account the costs of liquefaction, transportation, and reverse regasification. Consequently, the consumer in the USA pays significantly more for gas.

2. TTF - European gas. This is the main benchmark for gas prices in Europe. The name stands for Title Transfer Facility - a virtual gas trading platform.

Gas trading on TTF is mainly conducted on DUTCH TTF NATURAL GAS. This exchange is the leader of the European gas market. The exchange sells about 20 trillion cubic meters of gas annually.

It is worth noting that on the Russian futures market (Moscow Exchange), futures contracts for American gas are traded. Notably, since April 8, 2025, investors have been able to trade futures contracts for European gas.

On the Moscow Exchange, such contracts are designated by the code NG-11.25 and similar combinations of numbers and letters.

The overview was presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty "Higher School of Management" of the Financial University under the Government of the Russian Federation.