No More Foreplay: Russia Threatens European Gas Supply Disruptions

It appears Vladimir Putin is willing to hit’em while they’re down. Early European equity weakness (and safe-haven flows) on asset-freeze threats have accelerated as Bloomberg reports, Russian energy minister Alexander Novak threatens gas supply disruptions if the EU continues to re-export Russian gas to Ukraine. 3Y German bond yields have plunged to -4.1bps, a record low close and European stocks are closing on their lows of the day.

  • *RUSSIA THREATENS GAS SUPPLY THROTTLING TO EUROPE: HANDELSBLATT

3Y yield at record (negative) lows…

forex

As Bloomberg reports, Russia Threatens Gas Supply Throttling to Europe: Handelsblatt

EU re-exporting Russian-purchased gas to Ukraine exceeds existing treaties, Novak tells newspaper

Novak says only adherence to negotiated agreements can guarantee undisrupted gas supplies to Europe: Handelsblatt

Novak says Ukraine has rejected constructive offers from Russia on pricing, reducing Ukrainian gas debt and future pre-payments ahead of talks tomorrow in Berlin: Handelsblatt

*  *  *

Who will be hurt most?

*  *  *

As we discussed before, Europe is confident it can withstand a disruption as it has been storing gas ahead of the winter.

However…

European storage facilities contained a record 75.7 billion cubic meters (2.7 trillion cubic feet) of gas yesterday, making them more than 91 percent full, according to Gas Infrastructure Europe, a Brussels-based lobby group.

“If colder weather arrives, then storage levels could well be drained,” Citigroup said.

Just as we warned here…

It already appears as though the developing El Nino pattern may mean noticeably colder weather this winter…

 

*  *  *

It appears Europe’s short-term plan to mitigate the “Winter War” may have bigger boomerang consequences than they seem to believe (and bear in mind the consequences of cold, pissed off Europeans in the past).

http://www.zerohedge.com/news/2014-09-25/no-more-foreplay-russia-threatens-european-gas-supply-disruptions

About the author

Related

(FXBOT.MARKET) -- 11/21/2017 -- FXBOT.MARKET is interested in cultivating high quality, consistent FX strategies based on honesty and transparency.  Every system has a bad day, a bad month - we are traders we get it.  But deleting history or ...

Elite E Services has teamed up with IC Markets to provide non-US and US-QEP Forex clients with the ability to trade BTC/USD in MT4.  For those of you who are not familiar with Bitcoin or MT4 you can read our books Splitting Pennies and the sequel ...

forex

Follow Global Intel Hub

Follow GIH and get free updates on Global Intelligence, Analysis, and more.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.