Zhitong Finance APP learned that as Gazprom recently decided not to restart Nord Stream 1 pipeline, natural gas prices in Europe soared 35% on Monday, increasing the risk of major European economies falling into recession and forcing natural gas rationing.
As of press time, the Netherlands' natural gas prices have fallen in recent months, and are currently up 18.49% to 254.355 euros per megawatt-hour. The contract fell 37% last week. After the Russian gas interruption, European governments are taking urgent measures to respond. Sweden and Finland have formulated support measures over the weekend to help utilities overcome the mortgage requirements and prevent the "Lehman" crisis. Europe's energy ministers will hold a special meeting on Friday to discuss radical proposals to curb electricity prices, including setting a gas price cap and suspending electricity derivatives trading.
The EU has been strengthening its gas reserves for the heating season, but it has not yet reached its target. Things may get worse once gas inventory is reduced, especially when the heating season is nearing the end or the area is hit by severe cold waves.
Analysts at JPMorgan Chase said in a report that given the tight gas supply, Europe may take mandatory gas restrictions on non-essential industries, and even rolling gas outages based on weather conditions this winter. Goldman Sachs said that after the Russian gas interruption, European natural gas prices may again approach the highs set in August.
