51–60 of 175 posts
Earlier quoted context omitted.
> meaning they will pay pretty much any price to get it They would buy it at current market rate, which is dropping atm. That's why LNG tankers wait at the coast for a hopefully future higher price.
Is this not diminished by the buyers hedging?
Earlier quoted context omitted.
The terminal is for exports from the US (particularly to Europe), and the futures contracts are on US gas prices. Europe desperately needs gas this winter. Markets are pricing in the assumption that the US producers will get great prices from European consumers this winter. If US gas can't get to Europe then the US can't sell that gas at high prices in Europe. Also, additionally, the domestic market will be flooded i…
whats interesting to consider is that while russia had no interest in sabotaging their nordstream pipelines, the US absolutely did. conversely russia has great interest in fouling up the gas markets the US relies upon to profit from russias curious energy export misfortunes.
The US would suffer an incredible risk if it ever came out that they intentionally sabotaged European energy supplies to such a scale.
Can someone explain why the rumor of cracked pipes and delayed restart of a terminal would cause the futures price to go down? I would think that news of a supply constraint would cause the price to go up. TIA
When operational, this facility consumes billions of cubic feet of natural gas [1]. They take gas make it liquid, put it on a boat, ship it. If they have cracked pipes, they are less likely to reopen. Not reopening, not going to consume the gas. Less demand for gas. Price drops. [1] https://www.eia.gov/todayinenergy/detail.php?id=52859
Earlier quoted context omitted.
The terminal is for exports from the US (particularly to Europe), and the futures contracts are on US gas prices. Europe desperately needs gas this winter. Markets are pricing in the assumption that the US producers will get great prices from European consumers this winter. If US gas can't get to Europe then the US can't sell that gas at high prices in Europe. Also, additionally, the domestic market will be flooded i…
whats interesting to consider is that while russia had no interest in sabotaging their nordstream pipelines, the US absolutely did. conversely russia has great interest in fouling up the gas markets the US relies upon to profit from russias curious energy export misfortunes.
Earlier quoted context omitted.
whats interesting to consider is that while russia had no interest in sabotaging their nordstream pipelines, the US absolutely did. conversely russia has great interest in fouling up the gas markets the US relies upon to profit from russias curious energy export misfortunes.
Putin has plenty of interest in sabotaging the pipelines. If the pipelines are destroyed, one cannot kill Putin, take over, and sell gas to europe again to be rich. The US would suffer an incredible risk if it ever came out that they intentionally sabotaged European energy supplies to such a scale.
Earlier quoted context omitted.
Isn't it true that the price for gas in Europe is very inelastic at the moment (meaning they will pay pretty much any price to get it) and so any shortage of it will cause dramatic price increase? Also, Europe can't easily switch to another source of gas because they have maxed out everything they could. This is basically the reason why OPEC restricts oil production, it is just here the same is happening unintentiona…
> meaning they will pay pretty much any price to get it They would buy it at current market rate, which is dropping atm. That's why LNG tankers wait at the coast for a hopefully future higher price.
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Why is anyone still believing this stuff? How is anything on Twitter taken seriously anymore??
Funny that you say this, taking OP at face value that the account was verified (it was not). You’re doing the same thing
Commodity traders and investors are very networked and really like such immediate usage news. Many firms also count trucks/traffic near sites etc. so it isn't surprising to see people respond to this. However, the causation is unclear to me. European gas stocks are at full capacity as is and this Winter is warm with minimal gas burned so far. A 7% drop is par for course in the last few weeks. An extra piece of bad ne…
> this Winter is warm with minimal gas burned so far I feel like I'm going crazy as this is not the first time I've seen / heard this argument. What does winter mean? I thought it was the months from December to February. I don't understand the narrative that we're in a warm winter at all . Winter, just like Game of Thrones, is coming.
Earlier quoted context omitted.
Putin has plenty of interest in sabotaging the pipelines. If the pipelines are destroyed, one cannot kill Putin, take over, and sell gas to europe again to be rich. The US would suffer an incredible risk if it ever came out that they intentionally sabotaged European energy supplies to such a scale.
What risk? The US says jump and European politicians ask how high...
Does that suggest your model might be wrong or over-simplified?