Gas futures prices in Europe increased by 5.6% due to a decrease in supplies across Yamal – Europe
Gas futures prices in Europe are growing at the opening by 5.6% against the backdrop of declining supplies through Yamal-Europe, just above $ 880 per thousand cubic meters, according to ICE Futures data.
Gas pumping through the Yamal-Europe pipeline to Germany on Thursday morning decreased by more than a third: in the period from 8.00 to 10.00 Moscow time it fluctuated in the region of 625-695 thousand cubic meters per hour.
At the same time, applications for Thursday for pumping through the Ukrainian gas transportation system indicate the maximum volume of supplies within the framework of Gazprom’s contractual obligations – 109 million cubic meters per day.
The cost of the next – December – gas futures according to the Dutch TTF index, the most liquid European hub, at the opening of trading amounted to 858.3 dollars per thousand cubic meters, and by 10.27 Moscow time increased to 880.5 dollars, which is 5.6% higher than the estimated price of the previous trading day.
At the same time, prices were declining earlier in the week. Thus, the estimated price of December futures on Wednesday fell to about $ 835, which is more than 10% lower than Monday and 3.4% lower than Tuesday.
By lowering prices, the market reacted to an increase in Russian gas supplies. On November 9, Gazprom announced that it had approved and began implementing a plan to pump gas into five European underground storage facilities for November, completing pumping into Russian ones. The corresponding order to the company was given by the President of the Russian Federation Vladimir Putin.
Gas prices in Europe rose sharply in late summer and early autumn. Back in early August, the estimated price of the nearest futures on the Dutch TTF index was about $ 515 per thousand cubic meters, and by the end of September the figure had more than doubled.
Experts linked the rise in gas prices in Europe to several factors: the low level of occupancy of European underground storage facilities, limited supply from the main suppliers and high demand for liquefied natural gas in Asia.
The all-time maximum – $ 1937 – was reached on October 6, after which gas prices began to decline. On the first day of November – for the first time in a month and a half – the price of futures fell below $ 750 per thousand cubic meters.