The EU energy system is unstable and gas supply shortages may occur. This was stated last week by senior officials of the Russian energy giant Gazprom.
Gazprom, once the EU’s main gas supplier, significantly reduced its exports to the EU region last year as a result of Western sanctions and sabotage of the Nord Stream pipeline.
The Nord Stream 1 pipeline, which runs under the Baltic Sea and transports natural gas from Russia to the European Union, and the newly built Nord Stream 2 pipeline were damaged by underwater explosions in September last year, putting them out of service.
Gazprom’s top managers, Sergei Komlev and Alexander Shabin, said in an internal company publication:
“The fact that the deficit in the system has not disappeared is evidenced not only by the higher price level in 2023 compared to the years before the coronavirus crisis, but also by the continuation of a stable contango in the natural gas market.”
The term “Contango” refers to the commodity futures trading situation in which… Futures prices on an underlying asset (e.g. a commodity, but also indices, currencies, etc.) are higher than the current spot price. This encourages traders to store raw materials for more profitable resale in the future.
Gazprom managers said:
“This price behavior, according to market players, means that the emergency energy security system in Europe is unstable!”
Crises are everywhere with politicians disillusioned with the planet and expecting something else.
The impact of the war between Israel and Hamas on oil prices was mentioned by Theodoros Tsakiris, associate professor of geopolitics and energy policy at the University of Nicosia, in his talk to ERT!
“What we see at this moment is The first reflexive reaction of the markets. (…) What could happen that would cause a much bigger explosion (in the global oil market); There are two types of unknowns Who will judge this situation? The first is If the war were limited to Gaza. If we were going to a more general explosion that would drag Hizb allah On the northern front, but there will also be hotbeds of reaction on the Palestinian side, with regard to the West Bank itself. (…) And secondly He is How far is the Israeli operation to restore Gaza? – Because that’s what it’s all about, his next military move – it will be done this way It will cause a large number of civilian casualties, which will require the Kingdom of Saudi Arabia – Because this is a leading force – To go ahead with something would essentially be a way to put pressure on the WestTo pressure Israel to stop.The professor said.
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