Are the days of oil/gas indexation numbered?

A calculated risk?


An unprecedented dislocation in the price of oil and gas has left European utilities – many of whom purchase gas through long-term contracts linked to oil – feeling the financial pain and questioning whether oil indexation still makes sense for them.

Although the death knell for oil indexation has been rung many times before, the current price disparity between oil and gas is predicted to last for several years, leading some experts to believe an inevitable transition away from oil indexation is