Gas prices in the UK and Europe add significant gains last week

Gas prices in the UK and Europe rose Wednesday, adding value last week, as new concerns related to the supply of essential oil and the heat hit the market.

Rising oil prices have caused frustration over Russian exports, which remain below their level before the plague, while Germany. suspended the issuance of licenses Nord Stream 2 political pipeline this week. Traders and professionals are now hoping that its start will not be approved until the second half of next year.

Prices fell slightly from a regular peak in October Russian President Vladimir Putin also announced that state-run Gazprom would increase its stocks this month, following criticism that Moscow had exacerbated the gas crisis by lowering Western European sales this year.

The UK gas price target for December rose 5 percent Wednesday to $ 2.51 per therm, up from $ 1.79 last week, with many benefits coming in the past two days. The European benchmark gained about 7 percent to a high price of € 101.60 per megawatt hour, up from € 64 last week.

Prices fell later in the period, with the European benchmark returning to € 95.50 and the UK price to £ 2.38.

More than a third of the EU’s gas emissions come from Russia, but this year exports are down, Gazprom is restricting sales to long-term contracts while allowing its continental reserves to drop significantly.

Gazprom raised its exports slightly in November and added some items to its warehouse, but rates are still low as they were in 2019 and 2020, although Russia finished filling its warehouse premises before the winter.

“The suspension of Nord Stream 2 certification has led to a resurgence,” said Zongqiang Luo at Rystad Energy, a co-founder. “The flow from Russia to Europe via Ukraine and Poland has increased slightly per week, although it is too low to cool in the winter.”

Russia has been accused by some European lawmakers of trying to force Germany and the European Commission to speed up the adoption of Nord Stream 2, which will repatriate goods via Ukraine to Germany via the Baltic Sea. Some analysts say Moscow is using the gas crisis as part of a plan to disrupt Europe’s economy.

Gazprom has repeatedly refused to ship goods to Western Europe through Ukraine, where authorities are accusing Moscow of trying to “disrupt” Europe. Putin has denied the allegations to be political.

Ukraine is also concerned about the detention of Russian troops near its borders, while the refugee crisis on the Belarus-Poland border is seen by some authorities as an attempt by Moscow to spread the unrest.

Global markets remain strong as demand grows, while Asia buys more natural commodities.

Mike Muller, Asia ‘s chief executive at Vitol, an independent oil retailer around the world, told a Financial Times conference Wednesday that “we have seen a huge decline in Chinese maritime resources, which tells you that globally we now have very low shares”.

He added: “It is a fact that the market is still going strong.”