By Alexander Miller, consultant in energy markets. Eurasia Business news, October 5, 2022

Spot prices for gas in Europe for the first time since July 21 are below $ 1600 per thousand cubic meters, according to the data of the London stock exchange ICE. Earlier today, Gazprom resumed the supply of Russian energy to Italy through Austria.

In the first minutes of trading, futures contracts cost $ 1700.6 per thousand cubic meters, but after Gazprom’s message, prices fell to $ 1590.2 per thousand cubic meters.

On October 1, Gazprom informed the Italian Eni about the impossibility of gas supplies through Austria due to problems with Austrian legislation. On October 5, deliveries were resumed after the permission of the Austrian operator. Italy receives 25% of gas from Russia, before the start of the military operation it received 40% of gas from the Russian Federation.

“The resumption of deliveries was made possible thanks to the decision of Eni and interested parties, as well as thanks to new legislative provisions introduced by the Austrian regulatory authorities,” the Italian company said in a press release on its website.

At the end of August, gas prices rose after the suspension of supplies by Gazprom through the Nord Stream gas pipeline due to the repair of turbines. At the end of September, gas prices rose due to detected leaks on three lines of Nord Stream and Nord Stream 2, which made the gas pipelines temporarily non-operational.

Between October 2021 and August 2022, gas prices in Europe grew by 231%.

On August 25 the spot price of gas in Europe had crossed $ 3,300 per 1 thousand cubic meters. Prices are growing by more than 10%, according to data from the London stock exchange ICE Futures. At the moment, the cost of the September futures on TTF on the exchange reached $ 3,312 per 1 thousand cubic meters. This is the maximum level since March 7, when a historical gas price of $ 3,898 per 1 thousand cubic meters was recorded. In early October last year, gas prices crossed $ 1,000 per 1 thousand cubic meters, a record since March 2018.

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