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

US Market News Digest for March 26

Top banks are split on the S&P 500 outlook: the market remains in a zone of uncertainty. The S&P 500 is holding above a key level, but the rally lacks

Irina Maksimova 10:47 2025-03-26 UTC+2

US indices rise despite KB Home

On Tuesday, the US stock market showed moderate growth: shares of the giant Apple rushed up, while Nvidia shares went down. Investors closely reacted to fresh data on public sentiment

Thomas Frank 09:02 2025-03-26 UTC+2

US Market News Digest for March 25

Yesterday, the S&P 500 unexpectedly put on a show, jumping 1.76% to reach 5,769, a level last seen on January 13th. As if following a well-rehearsed script, the Marlin oscillator

Natalia Andreeva 11:50 2025-03-25 UTC+2

Gold Rally, Crypto Boost: March Becomes Market Breakout Month

S&P Composite PMI at 53.5 in March vs. 51.6 in February Lockheed Martin Falls After Brokerage Downgrade Crypto Stocks Rise on Bitcoin Gains European Stocks Rise Ahead of Key German

Thomas Frank 10:57 2025-03-25 UTC+2

Market at crossroads: falling Dow Transports and rising Europe

The Dow Jones Transportation Average has dropped more than 17% from its November peak. Meanwhile, European equities are climbing ahead of upcoming business activity surveys. Next week brings key reports

12:39 2025-03-24 UTC+2

Financial wars: oil, gas, and sanctions in great power game

In the world of finance, every day is a battle for market dominance. Just as traders celebrate rising prices, the tides can turn in an instant. On Friday, natural

Natalia Andreeva 12:39 2025-03-24 UTC+2

US Market News Digest for March 24

Investor frustration with the Trump administration's trade approach has triggered capital flight and negatively impacted the S&P 500. Hopes for more lenient tariff action briefly lifted market sentiment

Ekaterina Kiseleva 11:21 2025-03-24 UTC+2

Falling Dow Transports, Gaining Europe: Market at Crossroads

While the broader US stock market is showing signs of recovery, a warning light for investors is still flashing as the Dow Jones Transports signals growing concerns about the health

Thomas Frank 10:49 2025-03-24 UTC+2

US Market News Digest for March 21

US stock market in limbo despite positive economic data such as unexpected growth in existing home sales On Thursday, US benchmark stock indices closed in the red: the Dow Jones

Natalia Andreeva 14:48 2025-03-21 UTC+2

Fed's actions to keep BTC from falling? BTC seeks stability

Some analysts believe that the Federal Reserve's current monetary policy—particularly its decision to hold interest rates steady and slow down quantitative tightening (QT)—could provide meaningful support for Bitcoin. According

Larisa Kolesnikova 13:11 2025-03-21 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.