European natural gas prices rose on Tuesday as the focus shifted to supply concerns from Russia while questions lingered over the pace of demand destruction.
Price Movement: Benchmark futures traded almost 200 euros per megawatt hour behind Russia’s mark Gazprom PJSC OGZPY cut flows on the north current pipeline at about 20% of capacity last week, Bloomberg reported.
Traders are staring at a lack of clarity about further moves Vladimir Putin led Russia as a country slashed exports to Europe to a multi-year low this summer. According to the report, the supply is less than a third of the normal volume.
fears of inflation: Restrictions imposed by Russia have prompted nations to stockpile gas supplies ahead of winter. The supply cut has pushed prices to early March highs, while soaring energy bills are fueling fears of plunging parts of the continent into recession, according to the report.
gas storage: The European facilities are almost 69% occupied. Shipments from Russia in the coming months, as well as Europe’s ability to ration gas and attract LNG from Asia, will be key factors going forward.