Gazprom CEO stands firm on $250 oil, $1000 gas view

BAKU (Reuters) – Europe’s bill for Russian gas supplies will rise by a quarter by the end of 2008 and will eventually double, the head of Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) said on Thursday, repeating his view that oil will rise at least $100.

Alexei Miller told reporters during a trip to Azerbaijan he expected prices to rise to $500 per 1,000 cubic metres from the current $400 by the end of 2008. If oil prices were to hit $250 per barrel, gas prices would hit $1,000, he said.


Many analysts and oil executives have already described Miller’s previous predictions of an oil price rally to $250 as apocalyptic.

They also warned against attempts to talk the oil and gas prices up, especially when predictions come from the company, which supplies a quarter of Europe’s gas needs.

On Thursday, Miller not only repeated his predictions but said it might happen earlier than many people expect.

“According to certain forecasts, the price of oil may reach $250 per barrel in the near future. If it does happen, the price of gas will exceed $1,000 per 1,000 cubic metres,” said Miller, who is accompanying Russian President Dmitry Medvedev on his trip to Azerbaijan.

“But this price won’t be something extraordinary for the market,” he added. “We at Gazprom are now reviewing the price forecast for the year-end and we believe prices in Europe will exceed $500 (per 1,000 cubic metres)”.

Reuters