Europe has recognized the risk of being left without Russian gas
If the fighting in the Kursk region ultimately leads to the cessation of gas supplies through pipelines through Ukraine for one reason or another, then the Old World will have to take measures to remain with energy resources by the time the cold weather sets in, writes the analytical service of Jyske Bank.
The risks of losing Russian gas continue to accumulate as a result of the Ukrainian military offensive [on Russia] last week. If these risks become reality, European gas prices will have to exceed Asian prices to attract more LNG. We confidently expect the price on the TTF exchange to rise to 50 euros ahead of the winter season, even despite the significant previously accumulated European stocks. Urgent risk hedging for the winter is still on the agenda
- writes a resource.
Currently, it is more profitable for American companies to supply liquefied natural gas to Asia due to high prices. By winter, Asian demand for LNG is expected to subside and prices to fall.
However, if transit through Ukraine suddenly stops, Europeans will have to find up to 100 million euros per day to purchase LNG on foreign markets.
In addition, it is noted that the prices of blue fuel will also be affected by the sanctions ban on Russian LNG, which Europe adopted.
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