European energy crisis drives global gas prices | OilPrice.com

Natural gas prices are rising around the world amid tight regional gas markets and high energy prices in Europe. The natural gas line is not over yet – especially if the coming winter is cooler than usual in the Northern Hemisphere, there is more room to hit new record highs. Natural gas congestion and skyrocketing protests in electricity prices are very common in Europe. But in recent years, the relative strength of regional gas markets in the United States, Asia, and Europe means that natural gas prices in one region may not be overlooked in other regions.

As the Northern Hemisphere prepares for the coming winter, analysts say the weather will be more important for natural gas prices and markets over the next few months. And if it gets colder than usual, Europe is not the only country that is feeling the pinch in energy prices.

The declining supply of gas in Europe “will focus on this neglected commodity for many years,” says John Kilduff, a partner with re-capital. CNBC this week.

Absolute hurricane in Europe even before winter

Europe’s tight gas market, low wind speeds, unusually low gas reserves and recorded carbon prices have combined in recent weeks to boost gas prices on the continent and energy prices in large economies. Record high ratings.

Almost every day gas and energy prices in Europe rise to new records, saving Pressure on governments Consumers are protesting against rising energy bills ahead of winter.

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With just two weeks to go before the vaccination season, natural gas reserves in Europe are at an all-time low in September. If this winter is lower than last winter and the winter is colder than the previous winter, the market will be worried about dramatic supply. Demand in Asia is so strong that supplies from Europe have not been met.

During the summer, despite strong demand for natural gas and rising prices, Russia’s giant gasprom did not have the potential to enter Europe through Ukraine.

Analysts say this could be a coincidence that the Russian giants are pushing for higher European gas prices and higher prices. Other analysts believe that the effective reduction of gasprom supply will force Europe’s gas customers to realize their needs. Controversial Nord Stream 2 pipe To Germany via Ukraine.

Kremlin says North Stream 2 could come to the rescue

Russia is now waiting for the German control cross to complete the construction of the Nord Stream 2, and the Kremlin says it has approved the immediate approval of the pipeline. It helps to buy Higher prices in Europe.

Kremlin spokesman Dmitry Peskov said on Wednesday that “the rapid deployment of Nord Stream 2 will significantly improve natural gas prices in Europe.”

Gazprom’s lower summer gas supplies can be a powerhouse or a product Unexpected interruption, Contributed to the current gas shortage in Europe.

The European gas boom will drive U.S. prices and LNN exports

In today’s interconnected regional gas markets, high prices in Europe also raise US standards.

“America should be an island, but over the last three or four years there has been a growing relationship between the United States and the global market,” Francisco Blanch, chief of the Bank of America’s Commodity and Commodity Strategy, told CNBC.

“We are related from 50% to 95%. The US market is being dragged along; Blanch said.

In the United States, Price of Henry Hub In a year and a half, Bespoke Weather Services said in a statement: Natural gas intelligence.

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High gas demand and high Asian location in LNG in Europe and Asia. High LNG exports, meanwhile, strengthen domestic U.S. gas supply in relatively weak production in recent months Still closed 39 percent In the Gulf of Mexico, it was more than two weeks since Hurricane Ida forced a hurricane to leave the area.

Analysts say U.S. natural gas prices could cool down in pleasant summer weather.

However, global crude oil / LNG supply shrinks winter prices, says Linsay Schneider at RBN Energy Wrote last week.

The impressive bull run for global gas prices has been the result of high LGN demand and supply congestion in Europe, a three-fold threat to domestic production, a reduction in imports from Russia, and a growing LNG. Loads, ”Schneider said.

“Not only is high gas prices and volatility now driving low, but low stocks are indicative of continued high prices for the next heating season,” said the energy analyst.

By Tsvetana Paraskova for Oilprice.com

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