European gas prices once again rose to record highs on fears over Russian supply peak. The gas prices have spiked in recent days because of the three-day halt in Russian deliveries to Germany via the Nord Stream 1 continues to approach. The biggest fear is that Moscow will now turn the taps back on afterwards remains high. In countries like France and Germany one year forward contracts for electricity prices have risen to record highs as worry over winter energy crunch continues to haunt Europe.
Meanwhile reports have emerged that Russia is burning off large amounts of its natural gas at the Portovaya LNG plant located near the Finland border and is burning an estimated $10 million worth of gas every day and experts say that the gas is being burnt which some experts say is around 4.34 million cubic meters of gas which had previously been exported to Germany.
The scientists are also worried that soot from the flare will actually impact the arctic ice. While burning of gas is common at processing plants it’s normally done for technical or safety reason. The scale of this burn has puzzled many experts. Gazprom is yet to comment on the reports of the prolonged flaring. Meanwhile all eyes now are on the U.S. federal chief Jerome Powell’s speech that is expected later. He’s expected to reiterate the message that the fed will continue to hike interest rates to try and rein inflation. This means that growth will also be hobbled. The central banks around the world are trying to find a delicate balance between curbing inflation and avoiding a recession. The challenge has been compounded this year by Russia’s invasion of Ukraine which has sent energy and food prices soaring and skyrocketing through the roof.