Wholesale gas prices skyrocketed after Russia decided to stop supplying Nord Stream pipeline | Business newsletter
Russia’s decision not to resume gas flow through the main Nord Stream 1 pipeline to Germany has sent wholesale costs soaring, raising supply concerns across Europe for next winter.
State-owned Gazprom The plan was scrapped to restart limited volume pumping on Saturday after a maintenance shutdown, due to a leaking turbine fault.
This decision – which European governments see as retaliation for Western sanctions over Russia’s war in Ukraine – was certainly reflected when markets opened on Monday morning. Two.
The leading European standard, known as the Dutch TTF, has grown by more than 400% in the past year, having increased by another 30%.
Contract for October delivery in the UK – regardless of the Russian language energy but under broader market pressure – 25% higher.
The stock market was also in turmoil with Germany’s DAX down nearly 2% following the Russian decision.
The FTSE 100 in London opened 0.7% lower thanks only to its strong energy components list.
In normal times, Nord Stream 1 brings a third of Europe’s supply from Russia.
Record prices, thanks to limited gas flows from Russia during the summer, have prompted some energy-intensive industries to scale back production, particularly in Germany.
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Russia closes gas pipeline to Europe
On Sunday, Berlin unveiled a 65 billion euro (£56 billion) package to help households and businesses overcome price challenges.
Measures, the third that Germany has introduced during the crisis so far, include tax breaks for manufacturers and subsidies for the lowest paid.
The UK is under growing pressure to comply to better protect consumers and companies from the worst effects of the coronavirus. tight cost of living.
Liz Truss, who was supposed to defeat Rishi Sunak came to Gate 10 when the result of Conservative Leadership Competition announced at lunchtime on Monday, has promised to reveal details of her plans within a week if she wins.
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Liz Truss promises ‘no new taxes’
The Bank of England has warned of an energy-led recession in its projections for bills – widely predicted to exceed £5,000 annually next year based on the path for wholesale costs.
Ms. Truss argued during the leadership campaign that a recession was not inevitable.
Options for the next prime minister include tax cuts, extra subsidies to support rising bills and a plan, similar to that revealed by Labor, that would freeze the cap on energy prices.
