Crude oil, by comparison, has been traded globally for decades, and prices around the world have converged more than natural-gas prices. U.S. oil, in the form of the benchmark West Texas Intermediate (WTI) crude price, trades slightly below the global price, which is tracked by Brent crude futures, a product originally based on oil from Europe’s North Sea.
Dutch TTF natural gas, the European reference price, reached $166.72 on Tuesday, moving past the post-invasion high of over $154. Dutch TTF is calculated based on the price of liquefied natural gas, which is shipped by tanker around the world. Prices in the U.S., based on the cost of gas delivered by pipelines within the country, are significantly lower.
Supplies of gas to Europe from Russia are at seasonal lows because flows to the Dutch trader GasTerra and the renewable-energy company Orsted have been cut in response to their refusal to pay for gas in rubles, Citi strategists said. Russia’s Gazprom has stopped supplying gas to both companies because they refused to make their payments in the Russian currency at the end of May.
No comments:
Post a Comment