The renewed stop of Russian gas deliveries through the important Nord Stream 1 pipeline has triggered a renewed rally in gas prices. The European future rose by a good 30 percent on Monday to 272 euros per megawatt hour and was heading back towards the most recent record high.
Meanwhile, investors are fleeing German stocks for fear of a recession due to the lack of gas supplies from Russia. The Dax fell by 3.4 percent before the market and is now heading for its biggest daily loss since the beginning of March.
Germany gets practically no more gas from Russia. Russian gas giant Gazprom has suspended gas supplies to Germany through the Nord Stream 1 pipeline indefinitely.
The delivery stop, which began on Wednesday, was initially justified by regular maintenance work on a compressor station and was supposed to last until Saturday. On Friday evening, Gazprom then announced that there was an oil leak from a turbine.
The Kremlin blames the sanctions policy for the gas supply stop. However, it is suspected that Kremlin boss Vladimir Putin wants to put even more pressure on the West – and Germany in particular – in the conflict over Ukraine.
“Fear of a Lehman-like crisis in the European energy sector is growing,” wrote Jochen Stanzl, chief market analyst at trading house CMC Markets. (Reuters, dpa)