From S&P Global Platts, October 11:
Gas prices in Europe are experiencing wild swings, while analysts keep an eye on how prices could impact inflation. In China, ongoing power curbs means lower chances for another round of oil product export quota allocation.
1. All eyes on Russian gas supply behavior
What's happening? European gas markets have experienced unprecedented volatility since the start of October, with prices hitting record highs on intensifying winter supply concerns, before easing late last week. The market reacted to the rapid news flow throughout Europe, with wild intra-day price swings. All eyes are on Russia, which some hold responsible for the overheating gas market, after President Vladimir Putin hinted that Russian exports to Europe could rise.
What's next? It remains to be seen whether Russian exports to Europe will increase in the coming weeks. Demand in the Russian domestic market remains high after a cold start to the winter, while Gazprom is still working to complete its storage injection program by November. Russian deliveries via Belarus having been erratic in recent months, while exports via Ukraine are still low. Any indication of additional flows via these two routes would be key, while an early startup of Nord Stream 2 would almost certainly see more gas come to Europe.
2. … and what price movements could mean to Europe's consumer price index....
....MUCH MORE
