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March 11, 2010
Brattle Principal Dan Harris Quoted in Reuters Article on Gas Supply and Demand

Dan Harris, a Brattle principal based in Rome, Italy, was quoted in a Reuters article on March 8, 2010. The article, “Flexible Europe gas sales should cut glut,” discusses how the economic crisis has weakened demand for gas, driving a wedge between oil-indexed gas contracts and spot gas prices. This has increased the pressure on gas sellers to index some of their gas to spot prices rather than oil. According to Mr. Harris, the oversupply has led to a virtuous circle in which there is more gas available, leading to an increase in liquidity in gas spot markets, which in turn makes indexes more reliable and more suitable to used in gas supply contracts. While is a long-term trend, he notes that the current financial crisis and the fall in demand has accelerated this process.