LAST UPDATE 17:01
Energy prices continue to rise steadily in the shadow of the war in Ukraine, with gas reaching a new all-time high and oil firmly above $ 110.
After a week of impressive volatility, with jumps that exceeded 50%, the European gas today exceeded 200 euros.
In particular, the pan-European benchmark, the April contract in Amsterdam (TTF) recently reached 212 euroswhile now moving slightly lower at 209 euros the megawatt hour with rally 30%.
On a weekly basis, the contract price is moving for a brutal jump of 60% with the war in Ukraine and the relevant sanctions imposed on Moscow strongly squeezing the supply, as Russia is the largest supplier in Europe with flows reaching the Almost 40% of its total needs.
Fixed over $ 110 oil
After a slight easing in the morning, oil prices rose again as fears of Western sanctions halting Russian oil exports, offsetting the possibility of a larger oil supply from Iran, added to the news of a nuclear fire. Ukraine frightening markets.
World stock markets fell and oil prices rose following signs of escalating conflict, with news of Russian troops attacking Ukraine’s nuclear plant, the largest in Europe.
Thus, brent derivatives are now enhanced by 4.6% στα 115.7 dollars a barrel, while the WTI wins 5.6% and has climbed on 113.7 dollars a barrel.
In fact, prices are expected to record the largest weekly increase since mid-2020, with the WTI gaining more than 18% and brent more than 14%.
The rise comes amid fears that Western sanctions on Russia over Ukraine will cut off shipments from Russia, the world’s largest exporter of crude and petroleum products.
Trade in Russian crude has slowed as buyers are reluctant to buy because of sanctions, and there is growing pressure on US President Biden to ban US imports of Russian oil.
The escalation of the Russian war in Ukraine has not only caused geopolitical risks, but is adding to the already growing inflation concerns as well as leading to higher risk premiums, RBC Capital reports.
However, more oil reserves could be added than a coordinated release of 60 million barrels of oil reserves from developed countries.
Japan said today it plans to release 7.5 million barrels of oil, although only a small part of demand.
“Rising prices associated with real and estimated disruptions to Russian oil exports should offset any fall in prices from the potentially larger supply of Iranian oil,” said the Commonwealth Bank of Australia.
History of high LNG spot prices in Asia
Liquefied natural gas spot prices in Asia climbed to a new high of more than $ 59 per million British thermal units (mmBtu) as they followed the price rally in Europe amid concerns over supply disruptions following Russia’s invasion of Ukraine.
S&P Global Commodity Insights’ JKM (Japan-Korea-Marker) prices, widely used as a benchmark for the region, climbed to $ 59,672 per million thermal units (mmBtu), according to Reuters.
The previous record was in October 2021, when it reached $ 56,326 mmBtu.
Source: Capital
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