04.07.2008 // Rian.ru

President of Gazprom: If oil price exceeds $250 gas will cost $1,000

If the oil price exceeds $250 gas will cost $1,000, says President of Gazprom Aleksey Miller.

$1,000 will not be something extraordinary for the market as there have already been precedents when at some periods under certain contracts the gas price was higher than $1,000.

Miller said that Gazprom had changed its forecast of the European gas price.

“By the end of 2008 gas in Europe will cost $500 per 1,000 c m,” Miller said.

Earlier, Miller forecast that the average wholesale price under long-term contracts for gas supply to Europe would be $400 per 1,000 c m.

In June Miller said that in the future the oil price might reach $250 for one barrel. Presently, the world is witnessing a critical growth of oil and gas prices and the rivalry for these resources will be really fierce. Miller did not say when exactly that growth might happen. He said that speculative trading had a serious influence on the oil markets but that influence was not decisive.

On Wednesday the oil prices on the world markets hit new record. The price of the Aug Brent Crude Oil futures at InterContinental Exchange grew by 2.55% to $144.26 for one barrel. At New York Merchantile Exchange the price of the Aug futures of Light Sweet Crude Oil grew by 1.84% to $143.57 per barrel, while the price of the Aug Russian oil futures (Russian Export Blend Crude Oil) climbed 2.83% to $139.21/barrel.