Gas price ceiling will cause significant changes in the market

The forthcoming price cap on the benchmark European gas contract, so painstakingly negotiated by EU members, could drastically change the gas market and affect the functioning of others, as well as financial stability around the world. Such data is provided by the European Securities and Markets Authority (ESMA).

While agreeing with the ESMA findings, many experts see the gas price cap as a useless measure, as if supply security risks arise, the European Commission will suspend the price cap rule that the EU agreed to last month. It is obvious that the restriction was just conceived for a force majeure event of an interruption in supplies and an attempt to profit from this by raising the price. But just before this situation, the measure gives in.

However, analysts say the market is ripe for further volatility in the coming months. This means that the shortage will worsen, while the cost and quotations of raw materials will rise. Nobody can rely on the price ceiling as a means to help in this situation. At the same time, even the most formal restriction is enough to cause indignation and instability in the industry market and related relations.

The EU leadership is aware of these problems and the worst-case scenario for the development of the situation, the mechanism of energy suicide has already been launched, now all hopes for the viability of business relations and, of course, an accident that once this winter already saved the gas sector, came with unexpected warm weather.
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