2023-07-21 06:55:00
EUROPEAN GAS PRICES UP
BLOOMBERG - July 20, 2023 - European natural gas advanced as traders weighed extreme heat in parts of the continent and concerns about the little fuel Russia is still sending to the region.
Benchmark futures settled 3.9% higher after another session of sharp price moves. Searing temperatures in parts of the region and global competition for liquefied natural gas continue to provide upward pressure — even as flows from Norway, Europe’s top supplier, return to levels last seen in April.
Traders are also watching escalating tensions between Russia and Ukraine in the Black Sea, where Moscow has attacked agricultural storage facilities after halting the grain-export corridor. While there’ve been no statements that a tit-for-tat response against Russia could impact gas supplies, the market remains on edge.
In addition, more seasonal works are scheduled in Norway next month, and the market will be monitoring closely the maintenance schedule after unplanned delays already caused intense volatility in June. The recent price gains could be “attributed to the ongoing nervousness of the market,” analysts at Engie SA’s EnergyScan said in a daily note.
Dutch front-month gas, Europe’s benchmark, rose to €28.02 a megawatt-hour. The UK equivalent futures added 3.7%, while British day-ahead prices jumped amid weak wind generation. German power followed gas higher. Coal and carbon prices also advanced.
Still, ample fuel stockpiles and relatively muted industrial demand are providing a sense of energy security. Overall sentiment is still bearish, analysts at Energi Danmark said in a note. “The market is very well-supplied and does not need to save gas right now to achieve the goal of filled storages ahead of the upcoming winter,” they said.
Adding to signs of bearishness, net-short positions by investment funds in Dutch gas last week increased for the first time in more than a month, according to data published Wednesday by Intercontinental Exchange Inc. Net-shorts reached a year-to-date high in early June, but many investors later closed their positions after outages in Norway fueled sharp price spikes following months of relative calm.
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Earlier:
2023, July, 14, 06:45:00
RUSSIAN ENERGY REVENUES DOWN
The central bank still expects a current account surplus of $47 billion this year and $38 billion in 2024. On Tuesday, it said in a statement that Russia’s worsening trade balance was caused by a decrease in export volumes as well as the decline in prices mainly for energy exports.
2023, July, 7, 06:42:00
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The ruble has grown more vulnerable after a deterioration in Russia’s external finances. Unlike last year, when the government earned a record windfall after a rally in commodity prices, export proceeds have fallen sharply in 2023.
2023, June, 30, 06:40:00
RUSSIAN GAS WITHOUT EUROPE
In 2021, Russia pumped about 150 billion cubic meters of pipeline gas to Europe — more than enough to satisfy the combined annual consumption of Germany, France and Austria. Europe represented two-thirds of the country’s gas exports including flows of liquified natural gas.
2023, March, 31, 08:00:00
RUSSIA, EU BUSINESS & SANCTIONS
The EU says its sanctions are meant to cut Moscow revenues and access to technology used in war.
2023, March, 15, 07:10:00
EUROPEAN ENERGY CHANGES
As the EU pushes more broadly to bolster clean energy, it’s also responding to concerns that green industries could emigrate to the US and China, with the price that Europe pays for its energy a driving factor.
2023, March, 1, 11:20:00
EUROPEAN ENERGY COOPERATION
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2022, December, 13, 13:50:00
EUROPE NEED MORE GAS
Despite Russia slashing gas deliveries this year, Europe has averted a severe shortage and started the winter with brimming gas storage tanks
