Bloomberg: Gas trading could go off-exchange if prices are capped
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If a gas price ceiling is introduced, gas transactions may move to the OTC market, which will not affect the price cap. This was reported Bloomberg with reference to the clarification of the European Securities Market Authority (ESMA), which will be published today, January 23.
According to ESMA, the impact of the gas price ceiling on markets is still difficult to assess. ESMA believes that some of the effects of the restriction will appear after its activation.
“This could lead to significant and abrupt changes in the broader market environment, which could affect the orderly functioning of markets and, ultimately, financial stability,” ESMA said in a clarification.
The restriction of gas prices in the European Union should come into force on February 15. To activate it, several conditions must be met: TTF gas prices in the Netherlands must rise above €180 per MWh and €35 above world prices for liquefied natural gas.
At the beginning of 2023, the cost of gas in the EU became decline due to warm winters, high filling of gas storage facilities and increased electricity generation from wind farms. On January 17, gas prices dropped below $600 per thousand cubic meters for the first time since August 2021. m. At the auction on Friday, January 20, the cost of energy grew by 12%, up to $760 per thousand cubic meters. m.
On the situation with gas in the EU – in the material “Kommersant” “Nothing lasts forever under winter”.
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