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2022-09-19 13:00:00

EUROPEAN GAS PRICES DOWN ANEW

EUROPEAN GAS PRICES DOWN ANEW

BLOOMBERG- Sept 19, 2022 - European natural gas futures fell again to their lowest level in almost two months as nations intensify efforts to ease the energy crisis with the start of the heating season less than two weeks away.

Benchmark prices dropped as much as 8.8% on Monday, extending last week’s decline. Germany, the U.K. and others plan to spend billions to ease their reliance on Russian imports, rescue local energy companies, and cap prices to alleviate pressures on businesses and households.

“The situation in European energy markets has started to improve across the last three weeks as policy action has taken shape and increasing evidence of price-induced demand response has emerged,” analysts at Timera Energy said in a note on Monday.

Discussions on the European Commission’s proposals to help reduce the impact of the crunch continue and need to be signed off by member states. The plans include raising 140 billion euros ($140 billion) from higher taxes on energy companies, mandatory curbs on power use during peak hours and increasing liquidity.

High deliveries of liquefied natural gas are also playing into the bearish sentiment, with the recently started Eemshaven LNG terminal boosting Europe’s ability to import cargoes.

Germany’s decision on Friday to seize control of Russian firm Rosneft PJSC’s German oil refinery is seen as the first step in an overhaul that could give Berlin more control over the energy sector in Europe’s largest economy. The government is also in talks to nationalize Germany’s biggest gas importers, including Uniper SE and VNG AG, according to people familiar with the discussions.

The U.K. is developing a plan that may halve energy rates for many businesses, as part of a £40 billion ($46 billion) support package being finalized by new Prime Minister Liz Truss. France wants to cap energy-price hikes for households, a move that will cost the government a net 16 billion euros in 2023, according to Finance Minister Bruno Le Maire.

The effectiveness of these measures will be tested as Europe’s winter season begins and traders will focus on gas-storage levels. European inventories are about 86% full, slightly above the five-year average, according to Gas Infrastructure Europe.

Despite easing in recent weeks, gas prices are still more than seven times above the average for this time of year, worsening inflation and putting economies on the brink of recession. Demand is expected to gradually creep up ahead of the Oct. 1 start of the heating season.

“The European gas market remains on a knife edge as winter approaches,” the Timera Energy analysts said.

Temperatures are set to decline to below normal toward the end of the month, weather forecasts show.

Dutch front-month gas, the European benchmark, was down 7.3%, trading at 174 euros per megawatt-hour by 9:30 a.m. in Amsterdam, the lowest since July 25 on an intraday basis. The U.K. market is closed for a holiday.

Power prices declined too. Benchmark German year-ahead futures fell much as 8% to 470 euros a megawatt-hour. 

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Earlier:

EUROPEAN GAS PRICES DOWN ANEW
2022, September, 16, 15:55:00
EUROPEAN GAS PRICES DOWN YET
Benchmark futures fell as much as 9.6%, following extreme volatility this month. Rising gas stockpiles and ample supplies of liquefied natural gas have pulled prices back from August records, but they’re still more than seven times higher than the typical levels for this time of year.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 15, 16:30:00
EUROPEAN GAS PRICES RISE
Benchmark futures jumped as much as 12%. The European Commission’s radical intervention plan includes raising 140 billion euros ($140 billion) for consumers from energy companies’ earnings, as also mandatory curb on peak power demand and boosting liquidity.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 14, 13:10:00
EUROPEAN GAS PRICES UP: $140 BLN
Benchmark futures rose as much as 6.9%, a day after closing 4.2% higher. Authorities are designing measures designed to rein in an unprecedented energy crisis that has fueled inflation, hurt industry and left nations on the brink of a recession.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 6, 13:50:00
EUROPEAN ENERGY INFLATION
Benchmark energy futures fell after jumping on Monday, with Dutch front-month gas losing as much as 13% and German year-ahead power falling 11%.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 5, 14:35:00
EUROPEAN ENERGY CATASTROPHE
Gas prices surged more than 35% on Monday as traders reacted to Russia’s decision to keep its main gas pipeline shut indefinitely.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 5, 14:25:00
EUROPEAN COLD WINTER
That should help to make future decision making easier. But it is not going to help keep us warm this winter or indeed even in winter 2024.
EUROPEAN GAS PRICES DOWN ANEW
2022, September, 1, 14:15:00
EUROPEAN ENERGY MARKET GAP
The EU’s energy agency, Acer, has warned against tearing up the market structure. In a report in April, it said that the EU’s wholesale electricity markets work well under normal conditions, ensuring secure electricity supply.
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Tags: EUROPE, RUSSIA, ENERGY, GAS, ELECTRICITY, OIL, SANCTIONS