empty
06.09.2022 11:27 PM
The cost of gas in Europe falls, but the pressure does not subside

This image is no longer relevant

The cost of gas in Europe began to fall sharply after taking off on Monday. So, on Tuesday, September 6, the price of blue fuel fell by about 12% and by the time this material is being prepared, it is below $2,220 per 1,000 cubic meters.

The market may obviously breathe out after the big news about the complete halt of gas supplies from Russia to Europe via the Nord Stream pipeline, as fresh data on Europe's buildup of gas reserves gave the region hope to get through the coming winter safely. Thus, the filling rate of European storage facilities as of September 4 increased significantly, the overall level of occupancy has already reached more than 81.9%. Almost 90 billion cubic meters of gas have already been pumped into the underground storage facilities of the EU countries.

Ahead it became known that Gazprom completely stopped the pumping of gas to Europe through the Nord Stream pipeline for an indefinite period, explaining this decision by identified technical malfunctions. True, Siemens Energy itself did not see a technical reason for stopping the operation of the gas pipeline. Identified leaks, according to the company's management, usually do not affect the operation of the turbine and may well be eliminated on the spot.

Initially, it was announced that the operation of Nord Stream would be suspended for only three days to repair the only working gas pumping unit at the Portovaya compressor station. Gas transit was completely stopped on August 31 and was supposed to resume on September 2.

The downtime of Nord Stream deprives Europe of up to 33 million cubic meters per day, or approximately 1 billion cubic meters of gas per month. These losses add up to the previous reduction in the supply of raw materials from Russia via Nord Stream and other routes, by at least 8-9 billion cubic meters per month.

Amid such news, October futures on the TTF hub in the Netherlands jumped on the charts by 30% on September 5, almost reaching the level of $2,900 per 1,000 cubic meters.

The high level of filling of gas storages is not a sufficient reason for a strong decline in exchange prices for gas, although today it forms some retreat from recent peak values. Obviously, in the event of a severe cooling in the region this winter, much more blue fuel for heating residential and non-residential premises in Europe may be required. That is why gas quotes will continue to be volatile.

The news that the European Commission has developed two price ceilings for Russian gas may also contribute to lower gas prices today.

Meanwhile, Turkish President Recep Tayyip Erdogan expressed an interesting opinion about this whole story, speaking at a press conference. He stated that the gas crisis in Europe is a consequence of sanctions and the attitude of the European Union towards Russia. According to Erdogan, it was Europe's attitude towards the Russian president and the application of sanctions that caused the latter's response, which formed the current difficult situation in the region ahead of winter. The Turkish leader also suggested that very serious problems await Europe in the coming cold months.

Andreeva Natalya,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump acts, markets react: Nikkei up 2%, USD rallies

The Nikkei surged more than 2%, S&P 500 futures extended their rally, and the dollar jumped after US President Donald Trump said he has no plans to fire Fed Chairman

12:35 2025-04-23 UTC+2

US Market News Digest for April 23

The US market is showing renewed signs of instability. Positive signals about a potential de-escalation in the trade conflict with China are fueling hope, but experts warn against excessive optimism

Ekaterina Kiseleva 12:17 2025-04-23 UTC+2

Trump says markets react: Nikkei up 2%, dollar strengthens, China awaits outcome

Nikkei jumps more than 2%, S&P 500 futures continue rally Dollar jumps as Trump says he has no plans to fire Powell Hopes for China tariff easing, but no deal

Thomas Frank 10:52 2025-04-23 UTC+2

US Market News Digest for April 22

The S&P 500 and Nasdaq 100 continue to slide as mounting concerns over slowing economic growth and the impact of trade tariffs weigh on sentiment. The market remains volatile, with

Ekaterina Kiseleva 11:13 2025-04-22 UTC+2

Trump, Fed, and gold at $3,000? Markets respond to alarming signals

Investors are worried about the Fed's independence under Trump. US assets are falling, and the dollar is at a three-year low against the euro. Safe-haven currencies like

11:46 2025-04-21 UTC+2

US Market News Digest for April 21

The S&P 500 and Nasdaq slipped once again after Donald Trump lashed out at the Federal Reserve. His comments called the independence of the central bank into question, amplifying inflation

Ekaterina Kiseleva 11:41 2025-04-21 UTC+2

Trump, Fed, $3,000 Gold? Markets React to Red Flags

Investors Worried About Trump Fed Independence US Assets Fall, Dollar Hits Three-Year Low Against Euro Safe-Haven Yen, Swiss Franc Rise Gold Hits New Record High South Korea Stock Market

Thomas Frank 10:18 2025-04-21 UTC+2

US Market News Digest for April 18

Donald Trump ratcheted up his criticism against Federal Reserve Chairman Jerome Powell, once again calling for an immediate interest rate cut. This renewed political pressure adds to the tensions surrounding

Ekaterina Kiseleva 12:09 2025-04-18 UTC+2

When Giants Fall: How Alphabet and UnitedHealth Decisions Hurt the Market

Trading on U.S. stock markets ended in disarray on Thursday, with positive news from tech giants and pharma companies colliding with interest rate concerns. Market participants wavered between hopes

Thomas Frank 11:56 2025-04-18 UTC+2

Powell in danger? Can Trump fire Fed Chair and what does that mean for markets?

Donald Trump has once again set his sights on the Federal Reserve, accusing its chairman Jerome Powell of failing in monetary policy and threatening to fire him. But what lies

Аlena Ivannitskaya 08:43 2025-04-18 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.