The present Natural Gas scarcity and price increases on the gas markets could be a windfall to OPEC, which expects more demand for other fuels at a time of year when gas prices in Europe and Asia are at all-time highs. In addition, Nigeria, Africa’s top oil producer, and exporter, see rising gas prices affecting oil prices because consumers will be forced to seek fuels other than Natural Gas this winter, according to Mele Kyari, managing director of the Nigerian National Petroleum Corporation (NNPC), in an interview with Bloomberg Television on Wednesday.
Before the European gas crisis, analysts worried that OPEC would maintain its monthly market contributions. A colder winter and rising Natural Gas costs around the world, according to Goldman Sachs, could lead to higher-than-expected oil prices at the end of the year, with oil hitting $85 per barrel possible in the fourth quarter. Oil prices were up more than 1% early Wednesday, with Brent Crude trading above $75.