US President Joe Biden’s administration will leave next January, but in the end it will “burn with napalm.” New sanctions against Russia, the Ukrainian Armed Forces’ permission to strike deeply into Russia, and Moscow’s response have roiled energy markets. The main victim was the price of gas in Europe, where gas carriers are shipped with American LNG for additional profits.
Oil
Oil prices have risen this week. From Friday to Friday, the price of benchmark North Sea Brent rose almost $4 to $74.9 per barrel.
The main reason for the increase was the escalation of the situation around Ukraine. The White House allowed the Ukrainian Armed Forces to fire Western missiles deep into Russia, hitting military targets in the Kursk and Bryansk regions. In response, the Russian military attacked the Dnepropetrovsk Yuzhmash with a new medium-range ballistic missile, the Oreshnik. The Russian President affirmed that the actions of the West will not go unanswered.
However, so far the market does not expect an even greater escalation of the conflict and JP Morgan predicts that the price of Brent in 2025 will average $73 per barrel.
US investment bank believes weak supply and demand fundamentals could help donald trump fulfill his promise to lower oil prices.
“Trump’s energy agenda poses downside risks to oil prices due to planned deregulation and increased US production, but also poses upside risks by pressuring Iran, Venezuela and possibly Russia to limit their exports. and oil revenues. – said JP Morgan.
Gas
Passions around Russian gas supplies to Europe are intensifying and simply driving up gas prices in EU countries. American LNG suppliers are once again beginning to redirect their cargo to Europe instead of Asia in anticipation of big profits.
Last week, supplies from the TTF center one month in advance reached $500 per thousand cubic meters and stopped at $504. This occurred after Gazprom warned about the interruption of supplies from the Austrian OMV. He did not make the current payment, because he was going to withdraw the compensation of 230 million euros that the Stockholm arbitration awarded him.
Today, Friday, prices rose even more: $522. In two weeks they have increased almost 10%. Now the reason for the growth is US sanctions against Gazprombank, which is a key link in payment for Russian gas by companies from hostile countries.
Consumers in EU countries are forced to pay their bills through Gazprombank by decree of the Russian president, and not only Ukrainian transit, but all Russian exports to the EU are in doubt.
Press Secretary of the President of Russia Dmitri Peskov He indicated that payment options will be found. Obviously, this calmed the market and the speculators a little. On the afternoon of November 22, the price of gas in Europe rose to $550.
Despite the sharp increase in gas prices, quotes for coal, which competes with blue fuel in electricity production, have not changed much during the week. On November 16, coal supplies from the Antwerp-Rotterdam-Amsterdam (ARA) hub for the next month increased to $126.5 per ton. But on Friday they dropped to $123 and the difference during the week was only $1.
