UK confident of winter energy supply as gas prices fall – Business Live | a job
Good morning, and welcome to our continued coverage of the global economy, financial markets and the UK’s supply chain and business crisis.
The surge in energy prices sweeping Europe has eased a bit, as Russia tries to use its influence as an oil and gas superpower to help — and get approval for the controversial Nord Stream 2 undersea natural gas pipeline.
Gas prices in the United Kingdom retreated from record highs after President Vladimir Putin suggested that state-backed Gazprom might increase supplies to help Europe avoid a full-blown energy crisis.
In a televised meeting on Wednesday, Putin hinted:
“Let’s think about the potential increase in market supply, we just need to do it carefully.”
Moscow appears to be using the crisis to push Nord Stream 2 to get the green light.
Russian Deputy Prime Minister Alexander Novak said the approval of Nord Stream 2, which connects Russia with Germany under the Baltic Sea, could lower high European gas prices.
Novak said at a meeting of government officials and heads of energy companies.
“I think there are two factors, that can somewhat calm the current situation. First of all, of course, this is definitely certification completion and the fastest clearance of gas supplies via the completed Nord Stream 2,”
These comments sent gas prices back from record levels last night, in wild trading.
UK gas contracts for November delivery were up nearly 40% early Wednesday at over 400p per heat, but closed down 9% at 271 points.
But Nord Stream 2 is controversial He circumvents Ukraine, which relies on existing pipelines for income, and still needs to be approved by the German regulator.
Back in March, US Secretary of State Anthony Blinken warned that it was a “Russian geopolitical project aimed at dividing Europe and weakening European energy security.”
Nord Stream 2 It needs approval from the Berlin Energy Regulatory Authority to start operating commercially. They must be convinced that it meets EU “unbundling” rules that separate gas transportation from production and sales – an approval process that can take months.
Some EU MEPs are concerned that Nord Stream 2 may decide to start flows without the necessary approvals. Top lawmakers on Tuesday called on the European Commission to exercise all its powers to ensure compliance with EU lawBloomberg reports.
European stock markets are on track to recover from yesterday’s losses, with FTSE 100 Call more than 1%.
Investors are relieved that Republicans and Democrats in Congress have said they will consider a temporary measure to extend the country’s borrowing limit through December.
It would be a temporary solution to the US debt ceiling crisis, which threatens an unprecedented default.
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- 9am GMT: Italian retail sales for August
- 9:30 a.m. GMT: Energy UK’s 2021 Annual Conference
- 9:30 am GMT: ONS Business Insights and Impact on UK Economy Survey
- 12.30pm GMT: ECB monetary policy meeting accounts
- 12.30pm GMT: Challenger poll of US job cuts in September
- 1.30 pm GMT: US weekly unemployment report