Gas prices in Europe reached a mark above $2,050 per thousand cubic meters

MOSCOW, 28 Sep — PRIME. According to the results of trading on Wednesday, exchange prices for gas in Europe rose by 11%, slightly above $2,050 per thousand cubic meters, according to data from the London ICE exchange.

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1 Russia has reduced gas production in eight months, increased LNG production

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Russia has reduced gas production in eight months, increased LNG production

The nearest – October – futures (according to the index of the largest European hub TTF) opened trading at the level of 2047.3 dollars per thousand cubic meters (+0.8%). Wednesday’s price low was $1,917.6 (+3.8%) and the high was $2,088.6 (+13%). The latest futures traded at $2,051.9 (+11%). The dynamics of the cost is given from the settlement price of the previous trading day – 1847.3 dollars per thousand cubic meters (+10.7% to the settlement price on Monday).

The rate of growth of quotations the day before did not go beyond 10%, until, after the announcement of Gazprom, they began to grow sharply, reaching $2,103.5 per thousand cubic meters (+21.9% to Monday’s settlement price).

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On Tuesday, Gazprom categorically rejected Naftogaz’s claims in the international arbitration initiated by that case regarding gas transit to Europe, pointing out that services not provided by the Ukrainian side should not be paid. He also said that he considers the position of Naftogaz unfriendly and that its preservation could become the basis for the imposition of sanctions by the Russian authorities against the Ukrainian company, which would mean a ban on Gazprom from fulfilling obligations to it, including payment.

Since May 11, Ukraine has stopped receiving gas for transit through the Sokhranovka gas measuring station (GIS), citing the fact that it is under the control of Russian forces (on the territory of the LPR). As a result, there was only one entrance left for gas transit to Europe – GIS “Sudzha”. Gazprom stated that transferring all volumes to Sudzha is technologically impossible, the company fulfills all obligations to European consumers, and transit services are fully paid.

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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. And 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.