Gas prices in Europe are about to hit the very high peaks they reached last March, shortly after Russia's invasion of Ukraine.
Natural gas futures linked to the TTF, the price of wholesale gas in Europe, traded above 200 euros per megawatt hour, not far from the all-time high of 300 euros reached in March following the invasion of Ukraine by Russia, while persistent concerns about the shortage of European supplies continue to weigh on the market. A historic drought triggered by a dry summer that set record heat across Europe threatens to halt shipments of coal and oil along the River Rhine, exacerbating concerns in an already tight market. In addition, Russia's Gazprom has reduced flows through the Nord Stream pipeline, citing turbine problems, supplying only 33 million cubic meters per day, about 20% of its capacity, jeopardizing the region's goals to fill 80. % of storage capacity before winter. Rising natural gas prices led EU members to sign an agreement to reduce gas consumption by 15% in the following months, but for now, this savings is having the opposite effect.
Obviously, these price explosions in natural gas also have powerful repercussions on the cost of energy, with the cost of energy for one-year delivery in Germany which is at an all-time high.
Peak #inflation narrative gets another favorable number: US July PPI YoY drops to 9.8% vs 10.4% expected & lowest since the 8.9% seen in Oct 2021. The Core PPI YoY at 5.8%, lowest since June 2021, which was 5.6%. PPI is the 2nd better-than-expected inflation report this week. pic.twitter.com/apIZDkJW5t
– Holger Zschaepitz (@Schuldensuehner) August 11, 2022
Obviously there is a strong component of speculation, but if the prices remain these next August in Germany we will see a 70-80-style August in Italy: everything closed and everyone to the sea, possibly abroad, because the bills will frankly not be. that can be faced by the average family. They have a year to find a solution, but they may not be able to find it.
If Russia wanted to bring Germany to its knees, it is doing very well
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gas-ed-energia-prezzi-spot-al-massimo-per-fortuna-che-la-commissione-ha-fatto-partire-il-programma-di-risparmio/ on Thu, 11 Aug 2022 17:10:10 +0000.