- Dec 21, 2021 9:23 am GMT
The looming gas crisis attracts a lot of attention. I discussed some of the causes, trends and consequences with Darina El Zein, Onyx Advisory, recorded at Flux Live. During the discussion, we covered reasons of reducing European resilience to import dependency on Russia, technical and political factors leading to insufficient levels of injections to underground storages (which I also covered with figures in mt recent commentary for the Energy Post), LNG outflows to Asia, increasing European reliance on natural gas pushed by carbon price increase. I also go back to the debate about 're-engaging with Russia', on what terms? Incentivising to conclude new long-term contracts or political agreements to get more gas to spot? (for a background of EU-Russia gas relations and Gazprom's participation in ensuring both the long-term supplies and spot markets, see my book) At the very end I make an observation that markets are primarily social products [I pointed out to this argument in my other volume related to oil price dynamics beyond market assumptions] and react to declarations and risk perceptions more than to physical flows.
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