Rising energy prices will strengthen the economy of Turkmenistan

Rising energy prices will strengthen the economy of Turkmenistan

Great increase in the cost of natural gas and oil will strengthen the national economies of traditional energy exporters, including Turkmenistan.

Crude oil has risen by 64% this year to a seven-year high. Natural gas prices have almost doubled in the last six months, which became the highest point since 2014. Coal prices are also setting records.

Rising prices this week have boosted the Russian ruble, the Indonesian rupee and the Colombian peso, the currencies of major fossil fuel suppliers.

The market situation has also led to increased investor attention to developing countries that are energy exporters. Investments in the projects of these states are now seen by analysts as more and more reliable, while the economies of the United States and other developed countries may slow down growth, right up to a recession.

Financial holding JPMorgan predicted a possible rise in oil prices to $ 190 per barrel within three years, as well as a significant increase in annual inflation in the United States in the coming months.

While challenging times are predicted for the economies of Western countries, high energy prices today provide exporters with maximum profit, and the trend for the growth of the cost of fossil fuels will remain with us for a long time, market experts predict.

Against this background, the Turkmen fuel and energy complex continues to develop steadily. According to the results of the three quarters of this year, the export of Turkmen blue fuel increased by 37.5% compared to the same period last year, and the production of natural gas increased by 23.3%.

We also know that in July the price of Turkmen gas supplied to China increased, reaching USD 238 per thousand cubic meters. During this period, the country supplied 2.77 billion cubic meters of blue fuel to the Chinese market.

In January-August 2021, Turkmenistan exported in total about 31 billion cubic meters of natural gas, which is 8.3 billion cubic meters more than last year. The growth in deliveries amounted to about 37%.

Eziz OVEZOV