The natural gas prices in Europe dropped after reports of Russia’s de-escalation of tensions with Ukraine this week after the prices went up over concerns of energy supplies to the continent.
On Monday, Vladimir Putin, the Russian President, countered U.S warnings that Russia might invade Ukraine shortly despite repeated denials from Moscow regarding such a move. Leaders’ diplomatic global efforts are continuing to end the standoff with German Chancellor Olaf Scholz set to meet Putin after talks with the Ukrainian President in Kyiv.
The milder temperature and inflow of liquefied natural gas in Europe have eased the recent energy crunch. After bottoming out over the weekend, Russian gases which enter Slovakia from Ukraine via key route also recovered gradually. However, the supplies between the Yamal-Europe highways have been halted for eight weeks now.
Benchmark European gases fell to a low of 2.2. % today at 8.49 a.m. in Amsterdam before recovering to 79.70 euros, still lower at 1.3%.
The President of Ukraine, Volodymyr Zelenskiy, had created a panic in the market Monday after he predicted a Russian invasion, and this was later explained as an irony. Mykhailo Podolyak, an advisor to the chief of staff of Zelenskiy, said that the country was skeptical of concrete dates being cited for a potential invasion. The Ukrainian Roil market swung between war and peace has led to sarcasm.
Markets have responded to every change in the talk between The West and Russia over Ukraine. Any escalation in tension between Russia and Ukraine raises fresh fears of disruption in energy supplies from Russia. Europe depends on Russian energy supplies, and any sanctions from the West directly to Russia will be avoided.
