3Y yield at record (negative) lows...
As Bloomberg reports, Russia Threatens Gas Supply Throttling to Europe: Handelsblatt
Who will be hurt most?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
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.Just as we warned here...
"If colder weather arrives, then storage levels could well be drained," Citigroup said.
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).
Comment: It seems the Russians have a more objective view of what is in store this coming winter and the EU gas stores may not be sufficient. Unfortunately, the European economy is already suffering from the sanctions and gas shortages and rising prices will add to the suffering.
Russian national television film warns of cooling...Scientist calls Arctic model runs "Far from ideal"!
Sacrificing the world economy to bring down Russia
Russian Council Speaker to EU: Sanctions are counterproductive and more damaging to EU than Russia