Posted on 09/28/2021 11:07:06 AM PDT by SeekAndFind
There's Not much to add today that we didn't already cover overnight in "All Hell Is Breaking Loose In Energy Markets" suffice to note that European gas prices (Dutch TTF and UK NBP) are up another 12% today to new all time highs...
... and while all the dynamics we listed yesterday are all still applicable, we can add one more: a sudden drop off in Russian nat gas deliveries via the Yamal-Europe pipeline that runs across Belarus and Poland to Mallnow, Germany...
... which shrank lumped by 57% to the lowest level since Sept 6, just as a panicking Europe is scrambling for every BCF.
In an email seen by Bloomberg, Gazprom said that it continues to fully meet obligations under its supply contracts, adding that the current drop in Russian gas supplies via Mallnow is due to a request from a client and is temporary... although if it is anything as "temporary" as the current hyperinflation across the globe, then Europe is about to have a very unpleasant winter, at least until the Ukraine-bypassing Nord Stream 2 is activated - just as Putin wants.
Meanwhile, in an ominous development, US nat gas futures are starting to move in lockstep with Europe, and overnight Henry Hub topped $6/mmbtu for the first time since 2014.
And as iconic trader John Arnold warned on twitter recently, the surge in commodity prices will the surest way to crush any desire to go "green", which of course was obvious to all and is why we - rhetorically - asked back in June whether ESG will trigger energy hyperinflation.
Higher fossil fuel prices will spur a faster shift to renewable sources, all else equal, as they become economically competitive in more uses/geographies. But very high oil/gas prices risk a voter backlash against decarbonization policies, which are vital to a cleaner future. 7/ — John Arnold (@JohnArnoldFndtn) September 24, 2021
Meanwhile, as we wait for Europe's green dream to go up in carbon-heavy smoke as the continent has no choice but to destroy its virtue and ramp up coal plants, we leave the last word to Bloomberg's Javie Blas who writes that he has "never seen a large economy like Europe (UK+EU) sleep walking into an energy crunch (maybe let's call it a crisis since major industrial companies are having to shut down) and no a single politician appears to give a damn about it. Incredible."
European one-year forward electricity, spot natural gas, spot thermal coal, and spot CO2 emissions prices have risen (again) this morning to fresh all-time highs.
— Javier Blas (@JavierBlas) September 28, 2021
Is Joe Birdbrain taking another victory dance?
I care as much for the well-being of Europe, as they do about the well-being of America.
I can watch them suffer with disinterest.
They can just restart their coal plants this winter.
Oh wait, they tore them all down (or at least most of them).
Germany wanted the pipeline deal with the Russians.
Now Pooty Poot will give it to them, good and hard.
What does that mean, I wonder? What request? Which client?
Still, it isn't as if nobody saw this coming. It doesn't do much good to plan on 20-year time scales to reduce emissions if you freeze to death in the meantime.
Almost as if it were planned.
Quick, Europe! Institute rationing and price controls!
After all, that’s the liberal way - pass stupid laws to temporarily hide the damage done by previous stupid laws.
The conservative approach would be to simply fix the problem. Do what makes the most sense. But those guys ain’t conservatives.
Man, I love my outdoor wood boiler! We’re in Michigan
Russia’s got Europe by the short hairs.
I am not so worried with our nat gas prices going up, we have facilities that can ramp up production. We might be selling to the Europeans, again no problem.
But I am sure that our current resident can mess that up to, maybe condemn some more pipelines and slow nat gas down.
Putin just reminding the Europeans whose boss. GREENIE SUCKAS.
Like all good brain dead Leftists, they will blame everyone else but their incompetent polices for the causing the problems.
Look at the Biden Democrats here in the USA. Every wreck they caused by their bad polices is, supposedly, the fault of “bad actors”.
Yeah like every other crisis the Left has manufactured, we told “it is just transitionary” rather then the fault of their political incompetence and corruption.
This is unfortunately all too intentional...
As a Christian man I do not wish to see anyone suffer. As a man who loves justice, I take great pleasure in watching the arrogant holier-than-thou smarter-than-thou greenies suffering the consequences of their arrogance.
It’s a conundrum.
This is all Angela Merkel’s doing. Interesting how this happens shortly after she steps down.
Trump rightly castigated her for hitching Europe’s gas wagon to Russia’s star.
The only reason anyone is mad about Nordstream is that it cuts sticky fingers Ukraine and DC out of their source of graft. Russia direct to Germany makes it impossible for DC crooks to get in the middle.
Nobody had a problem with Russian gas when it passed through Ukraine where it can be stolen outright or held hostage to exorbitant transit and US consulting fees.
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