OilPrice: Russia refuses to open the "gas tap", prices in Europe continue to rise
Due to the cold last winter and hot summer, electricity consumption in Europe has increased, which devastated local UGS facilities, which are currently experiencing a gas shortage. At the same time, Russian Gazprom refused to transport more gas to Europe via Ukrainian transit next month, as a result of which on Monday prices for “blue fuel” soared by another 10 percent.
According to OilPrice, Russia's move to cut gas supplies to Europe means the continent cannot build up the necessary fuel reserves until the winter season. Bloomberg experts note that European gas storage facilities are only 72% loaded.
According to Reuters, citing Interfax, the Russian gas corporation has reserved only a third of the capacity of the Yamal-Europe gas pipeline for October. At the same time, Gazprom did not use the possibilities of additional supplies through Ukraine.
At the points of the Gazprom gas network, Sokhranovka and Sudzha, on the border between Russia and Ukraine, the gas giant was unable to book any of the 9,8 million cubic meters per day of the proposed capacity. Gas futures for October rose more than 11 percent, November futures rose 14 percent, and December futures nearly 15 percent.
Because of Russia's refusal to open the gas tap, European lawmakers are urging the European Commission to investigate possible manipulations by Gazprom, which insists on full compliance with existing contracts. In turn, the Russian company blames Europe for the crisis, citing the withdrawal of 66 billion cubic meters of gas from storage from 2020 to 2021, which delayed new gas supplies by three weeks.
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