Natural gas prices in Europe fluctuated Monday, with traders’ attention focused on cold weather and potential supply disruptions. Unfortunately, this happens when the gas storages are almost complete.
The gas price on the leading stock exchange in Amsterdam was 1.7 percent lower on Monday around 9:45 a.m. after an earlier rise of 1.3 percent. The weather forecasts indicate that temperatures in Europe will fall below normal values for the season in the coming weeks. It is expected that this will require more heating.
At the same time, Russia’s state-owned gas company Gazprom threatened to cut supplies through Ukraine, the last remaining route for its gas to Western European countries. As a result, the continent is entering winter with reservoirs nearly full after a massive effort to stockpile gas worldwide to replace Russian supplies. But a cold snap and fewer deliveries may lead to tighter market conditions.
Especially if stocks are quickly depleted in the coming months, an additional problem is an expectation that there will be less wind in the coming period, which means that there will also be less wind energy available.
Gazprom last week accused Ukraine of withholding gas supplies destined for Moldova and threatened to start cutting gas supplies to Europe this week. The route via Ukraine is currently the only route on which gas can be transported from Russia to Europe.
Ukraine denied that it had blocked gas from Russia to Moldova. Instead, Ukraine’s gas network operator accused Russia of using gas as political leverage. Moldovan Deputy Prime Minister Andrei Spinu also dismissed Gazprom’s accusations, saying on Telegram that “Gazprom is accusing Ukraine and Moldova of something that is not happening”.