European Gas Prices Soar to Historical High as Energy Crisis Worsens
Another day, another record-high for energy markets…
As Europe and the UK continue to sleepwalk into an energy crisis that is spreading across the globe, natural gas prices across the continent soared to yet a new record-high on Tuesday, as October futures on the Dutch TTF exchange skyrocketed by 12% to $29.19 per million Btu— the highest in history. November futures on the TTF were also sent surging to above $29.45 per million Btu on Tuesday.
And, it appears, that the rip-your-face-off gas prices will not be abating anytime soon, either. According to ratings agency Fitch, gas prices across Europe will continue to exceed records in the event that temperatures fall below seasonal, coupled with a physical shortage of supplies. “The main test for gas prices and consumers will be in winter – in case of cold weather and physical shortage, prices may soar even higher than now,” said Fitch senior director of natural resources and commodities Dmitry Marinchenko to Russian news agency TASS.
While the main dynamics for the hyperinflation in natural gas prices are outlined here, we can now add yet another obstacle into the mix: natural gas deliveries from Russia through the Yamal-Europe pipeline plummeted 57% on Tuesday, to the lowest level since the beginning of September— just as Europe struggles to secure every minuscule source of the commodity. An email seen by Bloomberg said that Gazprom is still fully complying with supply contracts, but did temporary cut back Russian gas supplies at the request of a client.
In the meantime, while Europe’s green fantasy heads to the coal plant to be engulfed in carbon-heavy smoke once the cold winter sets in and pocketbooks are left empty from hyperinflation, across the Atlantic an ominously similar situation sets in. Natural gas futures in the US are beginning to move upwards in sympathy with Europe, surpassing $6 per million Btu Monday night for the first time since 2008…
Information for this briefing was found via Bloomberg and the companies 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.
