European gas extends gains as Russia keeps grip on supply
European natural gas futures extended gains as Russia keeps a grip on supplies to the energy-hungry region.
While President Vladimir Putin has promised extra volumes, Russia's exporter Gazprom PJSC allocated no pipeline space in advance for December for Yamal-Europe flows sent through Belarus and Poland toward Germany. It also didn't book any of the additional pipeline capacity offered at the border with Ukraine, and only a fraction was allocated to unspecified buyers on the Ukrainian-Slovakian border.
Dutch front-month gas, the European benchmark, rose as much as 8.6% after the auctions, with the outcome representing a fresh blow to the European gas market as Russian flows remained limited and far below seasonal norms since last month. Russia is seeking to start shipments through its Nord Stream 2 pipeline, avoiding transit routes as much as possible. The link is built but is tied up in a highly politicized approval process...