Gas & Electricity

They won’t fall at home though because they buy them a year in advance, what it should mean is that next year they should plummet

That’s not the case (or at least shouldn’t be). The European gas market is priced against spot TTF (the chart was spot TTF which is the dutch natural gas benchmark delivery “today”), so we should see the benefits of lower TTF at next price fixing. Cheaper gas also means cheaper refining costs so we should see a reduction in petrol and diesel prices as well. As every silver lining has a cloud it’s worth noting these prices are still many magnitudes higher than historical TTF prices so costs will still be high to us, but possibly not as bad as feared.

I think the reasons he gave for the price reduction missed a bigger cause, although certainly Russia’s weaponising of gas against Europe has not had anything like the impacts Putin planned. China has been pulling in huge amounts of cheap nat gas from Russia (they won’t disclose how much) but it has the consequence of reducing their demand from other sources which has in turn lowered prices for rest of the world. So despite the initial panic and fear from markets and Putin’s held belief that Europe would come running his invasion has only actually succeeded in making Russia a significantly poorer pariah state.
 

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