EU Gas Prices Soaring Once Again as Countries Agree to Cut Consumption by 15%

Natural gas prices in the EU are climbing sharply once again, after Russia slashed shipments to only 20% capacity via the Nord Stream 1.

With Gazprom slated to send one more turbine into maintenance and reduce gas capacity to 20% come Wednesday, EU nations are becoming increasingly worried about the future of their energy supply. As such, member countries reached an agreement in Brussels on Tuesday to voluntarily cut back their gas usage by 15% over the next eight months, in an effort to avert a full-blown energy crisis.

“We can be masters of our own energy security this winter,”  said EU climate chief Frans Timmermans, as cited by Bloomberg. “We will stay the course until Ukraine is completely free of Russian aggression.” But, despite the EU’s perseverance, the region is slated for a very cold winter and a GDP decline of up to 1.5% should it fail to refill gas storage facilities to at least 80%.

Making matters simultaneously worse though, is the increase in natural gas prices. The price of natural gas in Europe has risen to the highest since March following Russia’s supply reduction, with August futures on the TTF hub momentarily surpassing $239 per megawatt hour on Wednesday morning. Since the beginning of the year, natural gas prices in Europe have quadrupled from the $60 per megawatt hour noted on January 1.

Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

NATO No More! US-Led Bloc Should Have Been Dissolved in 1991, China Says

According to China, NATO should have been sent straight to the waste bin after the...

Friday, April 1, 2022, 04:33:00 PM

Elon Musk Calls For Increasing Domestic Oil And Gas Output Immediately

The oil and gas sector has found an unlikely ally as of last night. In...

Saturday, March 5, 2022, 11:03:00 AM

Russian Military Personnel Payments Reach 7.5% Of Budget Expenditures Amid Ukraine Conflict

A recent analysis by the Re:Russia project reveals staggering figures related to Russian military expenditures....

Thursday, July 18, 2024, 12:57:00 PM

Russian Forex Market at Risk of Losing Yuan Trading Amid Sanctions

The Russian foreign exchange market may soon lose its last major active segment — transactions...

Friday, June 21, 2024, 12:30:00 PM

Freeport LNG Export Terminal, Shuttered Since a June Fire, Should Restart Next Month

On November 18, Freeport LNG Development, L.P. announced that it plans an initial restart of...

Tuesday, November 22, 2022, 06:32:00 AM