Russia Uncertainty Causes European Gas Prices To Rise: Traders Eye Vladmir Putin-Led Country's Next Move

European natural gas prices rose on Tuesday as focus shifted to concerns of supply from Russia, while questions remain on the pace of demand destruction.

Price Movement: Benchmark futures were trading near EUR 200 per megawatt-hour mark after Russia’s Gazprom PJSC OGZPY cut flows on the Nord Stream pipeline to about 20% of capacity last week, Bloomberg reported.

Traders are staring at a lack of clarity on further moves from Vladimir Putin-led Russia as the country has reduced exports to Europe to multiyear lows this summer. The supply is less than a third of normal volumes, as per the report.

Inflation Fears: The curbs put by Russia have sent nations scrambling to stockpile gas ahead of winter. The supply cut has pushed prices to early-March highs while surging energy bills are stoking fears of sending parts of the continent into recession, according to the report.

Gas Storage: European facilities are close to 69% full. Supply from Russia in the coming months along with Europe’s ability to ration gas and attract liquefied natural gas from Asia will be key factors going ahead.

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