MILAN, Nov. 2 (Class Editori) — Yesterday Europe’s gas prices rallied again after Russia stopped its supplies to the Old Continent but dropped right back when Gazprom revealed that gas supplies to China via the Power of Siberia pipeline, the largest gas transmission system of eastern Russia, hit a new record on October 31, exceeding the daily contractual obligations of Gazprom by more than 19%.
Dutch TTF Gas Futures grew by 14.5% to 74.25 euros trying to recover from Friday’s 15% drop to 64.9 euros per MG/hour, the lowest value of the last weeks, when Gazprom revealed its will to fill German and Austrian storage sites. On last October 5, commodity prices hit an all-time high of 162 euros due to a strong demand and limited supplies early last winter. However, values lost almost all 1.4% momentum to 65.7 euros when the Russian state news agency TASS published data on natural gas shipments to China.
Meanwhile, US WTI oil rose around 1% to 84.3 dollars per barrel, close to the seven-year record of 85.41 dollars reached last week thanks to the market hype concerning OPEC+’s goal to reach at least 400,000 barrels per day starting from December, a decision expected to be confirmed during next Thursday’s meeting. For its part, Saudi Aramco recorded a 30.4-billion-dollar profit in Q3, up 158% y-o-y, and a more than doubled cash flow amounting to 28.7 billion.
As for EU gas, Bloomberg reported that Russian gas shipments entering Germany’s Mallnow major compressor station reversed course and dropped to zero on Saturday, according to data from grid operator Gascade. The Yamal-Europe pipeline was instead sending volumes eastward from Germany to Poland, albeit at a lower rate.
After the Group of Twenty summit in Rome, Russian Foreign Minister Sergey Lavrov told TASS that Russia will not adhere to the timeframes for reaching carbon neutrality by 2050 that are imposed by Western countries as it thinks that this goal can be attained ten years later, namely in 2060, which is the target set by China. However, the two countries have not published a roadmap on how to achieve carbon neutrality by that date.
Russia has repeatedly said that it will increase flows to Europe, but this has yet to happen, while Russian President Vladimir Putin ordered Gazprom to start refilling its EU gas-storage facilities after November 8. According to Lavrov, Russia will be able to attain this goal because it is not guided by populist statements, unlike Western partners, who once pledged to stop using Russian pipeline gas in favor of spot trade.
“You know what has become of it,” Lavrov ironically noted. Finally, Algerian President Abdelmadjid Tebboune ordered a halt to gas flowing to Spain via Morocco amid a diplomatic spat between the two North African nations. He also told state-run energy company Sonatrach not to renew its transit accord with Morocco.
(Source:Class Editori)
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