MOSCOW, August 17 – Prime. Restrictions on gas supplies to Europe and emergency measures to save it make the market extremely sensitive to any negative information that may affect the consumption of “blue fuel” or its supply, said Sergei Kolobanov.
Last Monday, gas futures prices in Europe for the first time since the beginning of March exceeded $2,400 per thousand cubic meters. On Tuesday, they crossed the mark of $2,600 but closed trading at $2,345.
“The excitement associated with restrictions on gas supplies to Europe and emergency measures to save it makes this market extremely sensitive to any negative information that could potentially be related to gas consumption or supplies,” the agency’s source said. He attributed the current spike in prices to two news items: a reduction in gas supplies from Algeria to Italy and a shallowing of rivers in European countries that threatens to restrict shipping.
Bloomberg reported, citing grid data, that the flow of Algerian gas to Italy fell by 18.1 million cubic meters over the weekend, nearly a quarter from levels seen earlier in August.
“Analysts attributed the latest news (shallowing of rivers – ed.) to difficulties in supplying coal and fuel oil, an alternative gas fuel for power plants, by river transport, which could potentially increase demand for gas in the face of continued heat and increased demand for electricity for air conditioning,” – Kolobanov explained. He noted that although there was no confirmation of the problem with river navigation from fuel suppliers or energy companies, the gas market reacted nervously to the news with another price hike, “which is more of a speculative nature.”
At the same time, the CSR expert emphasized that gas injection into underground gas storage (UGS) is proceeding quite confidently and the level of their filling in the EU has already reached almost 75%, which allows us to count on reaching the target level of 90% by November.