Page 4 - FSUOGM Week 41 2021

FSUOGM COMMENTARY FSUOGM

European gas prices slide back

after Putin hints Russia may help

"stabilise" the market

Gazprom has been accused of witholding supply – whether to pressure the EU

to allow Nord Stream 2's launch or to simply driving up its profits

EUROPE NATURAL gas prices in Europe took a dive on is absolutely no Russian role in what is happen-
the afternoon of October 6, after Russian Presi- ing on the gas market,” Putin’s spokesman Dmi-
WHAT: dent Vladimir Putin hinted that Gazprom might try Peskov told reporters on October 6.
Putin has hinted that release more supply onto the market. In a government meeting earlier this year,
Gazprom could increase The contract for November gas delivery Putin stressed that Russia was a reliable energy
gas supply to Europe. at the Dutch TFF platform briefly soared to supplier.
almost $2,000 per 1,000 cubic metres in the “Russia has always been and is a reliable sup-
WHY: early hours of trading, before sliding back down plier of gas to its consumers all over the world, in
Prices responded by around $1,700. But it dipped to under $1,400 per Asia and Europe, and it always fulfils its obliga-
sliding back from historic 1,000 cubic metres after the Kremlin released a tions in full,” he said.
highs. statement by Putin addressing his government Instead, the Russian leader pinned the blame
ministers. for the crisis on European energy policy, particu-
WHAT NEXT: Gazprom has been subject to criticism for larly its focus on tackling climate change over
The EU is looking at exacerbating the gas supply crisis unfolding in delivering energy security.
ways of stabilising the Europe by withholding extra supply beyond its “You see what is happening in Europe. There
situation, including the minimum contractual obligations. Some have is hysteria and some confusion in the markets.
creation of a strategic accused the Russian exporter of trying to put Why? Because no one is taking it seriously,” he
gas reserve. pressure on Europe to allow the Nord Stream told officials. “Some people are speculating on
2 pipeline’s launch, while some analysts believe climate change issues, some people are under-
the company is simply driving up the price for estimating some things, some are starting to cut
its commercial benefit. back on investments in the extractive industries.
Moscow has denied these allegations. “There There needs to be a smooth transition.”

P4 www. NEWSBASE .com Week 41 13•October•2021