Russia President Putin delivered a massive reversal for natural gas prices. It looks like Russia is coming to the rescue for European natural gas prices. Putin noted that Russia is a reliable gas supplier to Europe and Asia and that they will boost its gas supplies to Europe. Putin claimed that we are ready to stabilize the energy market.
Natural gas contracts were skyrocketing in Europe, above the $400 level and then came crashing down after Putin said Russia would stabilize energy markets, Rowan Relton - commodity trader, says. Putin’s comments didn’t contain actual figures, so Europe’s energy crisis should not be deemed over. Russia was already poised to deliver record levels to Europe, so it is unclear how much supply they will deliver.
Oil
Crude prices are falling for a trifecta of reasons: Russian President Putin alleviated Europe’s energy supply concerns, US stockpiles rose more-than-expected, and after Saudi Arabia cut oil prices as slowdown fears accelerate as inflation worries grow.
The EIA crude oil inventory report shows the Hurricane Ida impact is mostly gone. Crude production rose 1.8% to 11.3 million barrels per day, approaching pre-peak hurricane season levels. Gasoline demand dropped for a fourth straight week, which was somewhat expected given the end of summer travel and as many individuals continue to work-from-home. Diesel demand is strong and that should prevent anyone from calling this a very bearish report, says Rowan Relton.
