Energy: European Gas Prices at Lowest Since Russian Invasion Began (Infographic)

Gas prices fell to lower levels on Tuesday.

Warmer weather and signals from the Kremlin that there will be a little more calm to pay for Russian gas in rubles have led to this lower gas prices to reach its lowest level since the Russian invasion. On the Dutch futures market – the benchmark for Europe – the gas price has increased fell 12% reach 84 euros per megawatt hour on Tuesday morning. In the meantime, the decline has weakened somewhat and the gas price is now around 90 euros per megawatt hour.

European sanctions

The European Union is preparing to end its oil purchases from Russia sanction the war in Ukrainebut the measure is “complex” and according to several European sources “will take several months”.

“The adoption of measures on oil requires the reversal of existing contracts, the search for alternatives and the avoidance of circumventing them. This will not happen overnight. It will take at least several months,” said a European official involved in the discussions. “The demand is limited increase prices‘ stressed several ministers and senior officials.

Russia exports two thirds of its oil to the EU. In 2021, it provided 30% of crude oil and 15% of petroleum products bought by the EU. “Russia’s oil import bill was four times that of gas, $80 billion versus $20 billion,” Borrell said.

Warmer weather and signals from the Kremlin that there is a little more leeway to pay for Russian gas in rubles have pushed gas prices to their lowest levels since the Russian invasion. On the Dutch futures market – the benchmark for Europe – the gas price fell by 12% on Tuesday morning to 84 euros per megawatt hour. Meanwhile, the decline has moderated somewhat and the gas price is now around €90 per megawatt hour. The European Union is preparing to halt its oil purchases from Russia to sanction the war in Ukraine, but the measure is “complex”. and according to several European sources, will last “several months”. “Passing oil measures requires reversing existing contracts, finding alternatives and avoiding circumventing them. It will happen overnight. It will take at least several months,” a European official involved said of the talks. “Cutting demand will raise prices,” stressed several ministers and senior officials. Russia exports two thirds of its oil to the EU. In 2021, it provided 30% of crude oil and 15% of petroleum products bought by the EU. “Russia’s oil import bill was four times that of gas, $80 billion versus $20 billion,” Borrell said.

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