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Gas prices rose by 10% after the European Commission’s “joking” proposal for a price ceiling

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Prices are also under pressure yesterday’s threat from Russian giant Gazprom, which proposed a further cut in gas flows to Europe via Ukraine in response to Kyiv allegedly stealing some of the gas destined for other villages.

The price of gas in the European market continues to grow. In Amsterdam it is sold almost 134 euros per MWh, with increasing more than 10% compared to yesterday. Proposal presented yesterday by EU Commission on Gas Price Ceiling considered insignificant. The limit for triggering the measure is actually set for 275 eurostwice the current values, and also expects a difference of at least 58 euros compared to the cost of LNG (usually more expensive) to enter features. Industry analysts called the proposal a “joke” for which the Draghi government fought hard. Analysts at Goldman Sachs also warn of the risk that the price ceiling, if activated, could reduce market liquidity distort pricing.

“The positive component of the price cap proposal, in our view, is that its high trigger threshold is unlikely to ever be reached“. Pressure on prices is also exerted by the threat that came yesterday from Russian giant Gazprom which proposed a further reduction in gas flows to Europe through Ukraine in retaliation for the fact that Kyiv will embezzle part of the gas destined for other countries. blame that Ukraine denies this. As temperatures across Europe begin to drop, the heat wave appears to be behind us.

Comforting thoughts come from transform, one of the world’s leading gas traders, according to whom an abnormally warm autumn will in any case allow Europe to winter months without any problems. The vaults are full, and according to Trafigura’s analysis, stocks could be a third full by spring. This is if not extraordinary weather conditions. In the future, if flows from Russia will not be completely blockedthis situation should also allow you to meet with relative calm winter 2024, this is seen by many as the present moment of truth for European energy security.

Source: II Fatto Quotidiano

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