Ofer Levin Investments: “An increase in demand for natural gas has caused its price to jump dramatically”

There are rising concerns in Europe regarding the ongoing increase in natural gas prices. According to the International Energy Agency (IEA), prices in September have tripled and even quadrupled in Germany and Spain compared with the averages of 2019 and 2020. Natural gas has become in recent years a crucial source for electricity, heating and cooking in Europe. Just three years ago, it was approximately half of the energy used for heating homes in the European Union.

“An increase in demand for natural gas has caused its price to jump dramatically,” says Ofer Levin from Ofer Levin Investments, which has been monitoring a vast variety of commodities, including energy-related, for more than two decades, “Even the notorious coal is undergoing a revival in several coal-fired electric plants just to meet electricity demand. Many countries are lifting COVID-19 restrictions and reopening their economies. Moreover, we must not forget that winter is coming soon in Europe, and this, of course, pushes the prices even further up while supply remains more or less the same. Another factor that should be considered,” continues Levin, “is climate change that might be causing a colder winter in Europe. As a result, people are heating their homes for longer periods of time”.