Comments from Novak:
- Russia has to fill its own gas storage facilities
- Gas prices don’t reflect fundamentals
- High gas prices are ‘hysteria’
- It’s important to stabilize gas market
- Speculation is driving European gas prices
He’s right on all fronts. The prices in European gas are nuts.
Nord Stream 2 might be online by year end but that’s not going to be soon enough to help this winter.
I suspect we’ve seen the highs for European gas today but that will depend on the weather.
Oil might be a different story as gas-to-oil switches are still economic even if gas prices are cut in half in Europe and Asia. A story just broke saying that OPEC is reluctant to add extra oil given economic and covid risks.