2022-10-21 11:25:00
EUROPEAN GAS PRICES DROP
BLOOMBERG- Oct 21, 2022 - Natural gas in Europe declined after leaders came together to back urgent measures, including a price cap, to contain the energy crisis that’s engulfed the economy.
Benchmark futures declined as much as 4.8% on Friday and headed for a third straight weekly loss. The politicians asked the European Commission to propose a “temporary dynamic price corridor,” and said they would pursue a temporary framework to cap the price of gas in electricity generation. They will also take steps to avoid extreme price spikes and use the EU’s joint purchasing power in negotiations with sellers.
“We sent also a clear signal to the market,” European Council President Charles Michel said. “I’m confident that there will be an effect very soon.”
The European Union presented the united front after German Chancellor Olaf Scholz yielded to pressure from other member states for a gas price cap. He had warned that limiting prices could endanger supply at a time when the region needs all the flows it can get. But countries including France, Italy and Poland had been pushing hard for a cap as dwindling Russian supplies bring the threat of shortages and blackouts.
The bloc’s energy ministers will meet next week to continue trying to hash out the details of the various plans. French President Emmanuel Macron said the aim is to have explicit mechanisms laid out in the next two to three weeks.
Gas markets have responded to every step in the negotiations to rein Europe’s energy crisis, which escalated after Russia’s invasion of Ukraine. Europe started the winter heating season well-supplied, with almost full reservoirs and strong LNG flows. These have helped push gas prices 60% lower from their August peak.
Dutch front-month gas, the European benchmark, was 3.3% lower at €123 per megawatt-hour at 8:46 a.m in Amsterdam. It’s 13% lower for the week.
Still, risks remain. Cold snaps and any disruption to existing supply from the US or Norway could drive prices much higher, said Nikoline Bromander, an analyst at Rystad Energy. Buyers in Asia are preparing for the winter by stepping up purchases of liquefied natural gas, which Europe has heavily depended on to replace Russian fuel.
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Earlier:
2022, October, 20, 14:20:00
GERMANY'S GAS WINTER HOPE
"If we continue to meet our savings target of at least 20% in Germany, if three LNG terminals start operating at the beginning of next year at the latest, and if the expected winter-related decline in imports and the rise in currently low exports remain moderate, then we can get through the winter without a national gas emergency," he said in a statement.
2022, October, 20, 14:15:00
EUROPEAN WINTER RISKS
While Europe lacks transparent data on who owns stored gas, the bulk is held by utilities, including state-owned companies, that will need to withdraw fuel to supply households and manufacturers, according to people familiar with the matter.
2022, October, 19, 12:00:00
EUROPE, RUSSIA SANCTIONS ANEW
The bloc’s eighth round of sanctions state that if a tanker owner transports Russian crude above an agreed price threshold, their ship would be prohibited from getting EU services needed to ship the commodity, such as insurance, “in the future.”
2022, October, 7, 10:20:00
GERMANY'S GAS REDUCTION
The head of Germany's Federal Network Agency, which would be in charge of gas rationing in the event of a supply emergency, repeated his warning a week ago that consumption was too high.
2022, October, 7, 10:15:00
RUSSIA'S OIL EXPORTS DOWN
Excluding Russia's share of Kazakhstan's CPC Blend exports, Russian crude exports averaged 2.99 million b/d in the month, down 290,000 b/d on the August levels and lowest since September 2021 when global oil demand was still recovering from pandemic lockdowns
2022, September, 9, 14:25:00
RUSSIAN GAS PRICES: NO LIMITS
Germany doesn’t support a price cap on Russia gas because some countries are still dependent on those supplies, Economy Minister Robert Habeck told reporters in Brussels.
2022, September, 6, 13:45:00
RUSSIAN NORD STREAM: ZERO
Russian flows of gas via the Nord Stream 1 pipeline, which runs under the Baltic Sea to Germany, remained at zero on Tuesday after Russia scrapped a Saturday deadline to resume flows following maintenance.
