The price of natural gas lives on a permanent roller coaster. And, yes, Russia is the main culprit for the doses of volatility that prevail in the market, either directly or indirectly. The price of the energy raw material has started this course with force, since it shoots up close to 50% following giving some respite in the final stretch of 2021, since it suffered a collapse of around 65% from December 21 to December 31.
This Tuesday they rebounded by around 10%, mainly due to Russia. The country chaired by Vladimir Putin has decided to further restrict gas flows to Europe, since supplies from Ukraine remain limited and at their lowest level since February while key Yamal-Europe pipeline operates in reverse and the raw material makes its way from Germany to Poland, so the gas goes east.
Even so, the situation is not critical, since prices are still far from highs, but more volatility is expected. Thus, the reference natural gas in Europe and delivery next month is trading at 88.73 euros MW / hour, far from the 180 euros that it reached on December 21, but also from the 20 euros at which 2020 started .
EFE
The US fleet of ships, which has served to alleviate the situation in the final stretch of the year, may not be the ace up Europe’s sleeve. The reason? Asia. Demand on the continent begins to recover and A new ‘rival’ will appear in the plans of the Old Continent, which will cause demand to increase and many freighters choose to trade with China, with the consequent pressure on prices.
In addition, the temperatures that have remained especially mild at the turn of the year might fall in the coming weeks, which will cause an increase in demand of natural gas and will exacerbate the high deficit prevailing throughout Europe.
Energi Danmark, one of the major energy trading groups, has been less than optimistic regarding the evolution of the price of natural gas. In a statement, they state that “the market appears poised to rise further, as fuel prices and carbon continue to rise“.
