Gas prices will fall as a result of the British referendum

The decision to leave the UK from the European Union will have a great impact on the global gas market, according to experts from Hermes Energy Group (HEG), who expect a dynamic decline in prices for all raw materials, including blue fuel.

In the past few weeks, the anticipation of the British referendum decision has had a significant impact on the previously highly volatile energy market. Since June 17, the most important energy resources such as oil, natural gas and coal have been in a strong uptrend, driven by optimism from investors planning to maintain UK membership in the European Union. Gas prices increased by 12 percent during this period, the fastest growth seen in the past few years.

According to experts, HEG, such rapid growth was also facilitated by fundamental factors, such as the planned further reduction in gas production at the Groningen field in the Netherlands. Today we know that the people of Britain voted in favor of leaving the European Union. What does the gas market expect in this situation in the near future? Investor optimism, which has recently led to an increase in prices on the gas market, will be quickly broken. Investors will return to fears about the pace of development of the global economy and Europe, which have been further compromised by the UK's exit from the European Union.

It is difficult to predict exactly what tangible consequences Brexit will have on the economic and financial development of the world, but experts expect a dynamic fall in prices for all commodities, including natural gas. This may take some time, but further correction can be expected, that is, a gradual increase in prices for gas, oil and coal.