(Finance) – I gas prices continue their run towards alarming levels for the European energy supply, with the Russian giant Gazprom throwing fuel on the fire. The state-controlled group has indeed claimed that European gas prices could still go up by 60% to over $ 4,000 per 1,000 cubic feet this winter.
The price of TTF gas futures contractsused by operators as a benchmark for the European market, shows an increase of 11% to 244.4 euro / MWh at 15.55 Italian time, after having risen to over 251 euro / MWh just before 3pm. 84 euro / MWh, just above the pre-conflict levels, and then start again on the upside on the prospects of a total cut in supplies by Russia.
The gas prices are not only driven by the announcements of Gazprom, which according to the Western powers is limiting the flow of Nord Stream 1 (to just 20% of capacity) for a precise choice and not for maintenance problems. In fact, the increase in spot gas prices also affects the raw material rally Asiathe closure of gas production and transportation plants in Norway for maintenance, the increase of temperatures, the decrease of wind, hydroelectric and nuclear generation in several European countries.
“Spot gas prices in Europe reached $ 2,500 (per 1,000 cubic meters). According to conservative estimates, if this trend persistsprices will exceed $ 4,000 per 1,000 cubic meters this winter, “Gazprom said when publishing its preliminary results.
Gazprom has reduced gas production since the beginning of the year by 13.2% compared to the same period last year to 274.8 billion cubic meters. Meanwhile, gas exports to non-CIS countries fell by 36.2% or 44.6 billion cubic meters to 78.5 billion cubic meters. Gazprom’s average daily exports in August increased 3.3% from July to 213.3 million cubic meters.