Despite the shift away from oil indexation in gas pricing, more than half the world’s internationally traded gas is still tied to the price of crude and other products such as gasoil and fuel oil. Most of the gas sold into Asia, and around half the gas supplied in Europe remains oil-indexed. So the issue of where oil prices are heading in 2014 is at least as important as to where the spot price for gas and LNG is heading.
Annual oil price averages have been remarkably steady in recent years. In 2011, ICE Brent futures averaged $110.97 per barrel; in 2012, they averaged $111.71/bbl; and in 2013, they had dropped – albeit only by $3/bbl – to $108.74/bbl on average.
Log in or register for a free trial to continue reading this article
Already a subscriber?
If you already have a subscription, sign in to continue reading this article.
Sign inNot a subscriber?
To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.
Sign up