Gas prices in Europe fell below $1,900 on Friday

MOSCOW, 30 Sep — PRIME. Exchange prices for gas in Europe following the results of trading on Friday fell by 7.7%, to below $1,900 per thousand cubic meters, according to data from the London-based ICE exchange.

Futures contracts at the opening of trading cost about $2,087.4 per thousand cubic meters (+2.1%), which became the price maximum. The price minimum was 1876.7 dollars (-8.2%). The latest futures traded at $1,887.3 (-7.7%). The dynamics is based on the estimated price of the previous trading day – $2,043.6 per thousand cubic meters.

Back in early March, gas prices in Europe, due to fears of a ban on the import of Russian energy resources, updated their historical highs for four days in a row. The price record of $3,892 per thousand cubic meters was reached on March 7. The last explosive growth, at the end of August, was associated with the announcement of Gazprom about the suspension of the Nord Stream gas pipeline for three days for scheduled maintenance. Quotes jumped above 3500 dollars per thousand cubic meters and updated historical records of the settlement price several times.

After a slight decline in prices in recent days have risen again. Growth rates of quotations on Tuesday did not go beyond 10%, until after Gazprom’s announcement they began to grow sharply, reaching $2,103.5 per thousand cubic meters (+21.9% to Monday’s settlement price).

The company said that it rejects the claims of the Ukrainian Naftogaz “on initiated proceedings” in arbitration regarding the transit of Russian gas to Europe, since services not provided by the Ukrainian side should not be paid. Gazprom stressed that the unfriendly position of Naftogaz could become the basis for sanctions against the Ukrainian company, which would mean a ban on Gazprom from fulfilling obligations to it, including payment.

In addition, the tension in the gas market causes the impossibility of deliveries to Europe via another route. A subsidiary of Gazprom, Nord Stream AG, the operator of Nord Stream, announced on Tuesday unprecedented damage to three strings of offshore gas pipelines of the Nord Stream system that run along the bottom of the Baltic Sea from Russia to Germany – Nord Stream. and Nord Stream 2. Nord Stream AG is not yet able to estimate the timing of the restoration of the gas infrastructure, the report said. The reasons for the destruction are being investigated.