On February 24, after the turmoil in Russia and Ukraine intensified, Europe's benchmark natural gas rose by more than 50%, the highest increase since 2005.
The intensification of turmoil in Russia and Ukraine has undoubtedly increased a lot of uncertainty about the price of natural gas in Europe. For example, Russia's natural gas pipeline exports to Europe through Ukraine are not sure whether it can operate properly, and European natural gas imports are accounted for by Russia with a 43% share, coupled with the shortage of existing natural gas stocks in Europe, various factors have superimposed on the price of European natural gas.
With the clarity of some factors, european natural gas prices rose and fell fast. European natural gas prices began to plummet on February 25 after yesterday's surge, and as of 17:00 Beijing time on February 25, European natural gas prices fell by more than 20%.
The decline in European gas prices has been affected by a number of factors, such as the announcement by the United States that penalties for Russia do not include penalties for energy, as well as the 38% increase in Russian gas exports through Ukraine on February 24, coupled with the Russian side's statement that the gas channel supplied to Europe through Ukraine is operating normally, has contributed to the decline in European gas prices.
While Europe is importing more gas from U.S. LNG, Europe still imports the most from Russia, so Europe's desire to get rid of Russian gas is unlikely to materialize in the short term. Gazprom is also trying to win more European markets, and Russian companies may be able to harvest more orders due to rising gas prices. Because European utilities are currently buying more gas from Russian companies under long-term contracts, and trading under long-term contracts will make Russian gas cheaper than spot gas currently traded in Europe. In this way, Europe still has a long way to get rid of Russian gas.
Text | Ou Jinfei title | Huang Zi gallium trial | Jiali Chen