DUBAI - The United Arab Emirates' energy minister said on Tuesday low gas prices were not sustainable and a recent hike reflected market fundamentals and a lack of investment in the sector.
"Gas prices were not sustainable (at) $2 or $3. New investments need to be there. I'm afraid it is not going to be magical. ..prices will go through ups and downs until the market realises the right price. The market will drive the price," Minister Suhail al-Mazrouei said at an industry conference in Dubai.
He added that if current prices continue it will be a burden on many countries and that longer term the market is not prepared to accept such prices.
Gas prices have soared 280% higher in Europe this year and by more than 100% in the United States due to a range of factors including low storage levels, carbon prices and reduced Russian supply.
(Reporting by Alexander Cornwell and Yousef Saba in Dubai, writing by Marwa Rashad in London; editing by Louise Heavens and Jason Neely) ((firstname.lastname@example.org; +447823669044;))