• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 1 day Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Supply Chain Woes Could Derail Biden’s Electric Vehicle Agenda

Supply Chain Woes Could Derail Biden’s Electric Vehicle Agenda

The Biden administration's electric vehicle…

Is It Time To Ditch Tech Stocks for Gold?

Is It Time To Ditch Tech Stocks for Gold?

Peter Schiff highlights the parallels…

EU Attempts To Break The Deadlock Over A Natural Gas Price Cap

The energy ministers of the 27 European Union member states are holding an emergency meeting in Brussels on Tuesday to try to reach an agreement over capping the price of natural gas to shield customers and businesses from spikes in prices.

Early on Tuesday before the meeting, the EU was still deeply divided over a mechanism that would ensure lower gas costs for consumers, utilities, and businesses, and at the same time keep Europe a preferred destination for liquefied natural gas (LNG) cargoes over Asia.

Last month, the European Commission proposed a new EU instrument to “limit excessive gas price spikes,” which wasn’t unanimously received by EU member states. The Commission proposed a so-called “safety price ceiling” of $290 (275 euros) on the month-ahead derivatives at the Title Transfer Facility (TTF), the EU’s most commonly used gas price benchmark. The mechanism is designed to prevent excessive price spikes “with a temporary and well-targeted instrument to automatically intervene on the gas derivatives in case of extreme gas price hikes.” 

“There is no consensus at this moment on how it needs to work and on the numbers,” Belgium’s Energy Minister Tinne van der Straeten told Bloomberg TV ahead of the Tuesday meeting.

“Security of supply is important to the continent as a whole. We have to keep gas flowing to Europe,” the Belgian minister added.

According to Bloomberg, there are divisions among member states, with Germany, the Netherlands, and Denmark insisting on a cautious approach with any market intervention, wary of a price cap that could drive LNG cargoes away from Europe. But another group led by Italy, Poland, Greece, and Belgium want more decisive measures to limit excessive price spikes and protect their economies from surging energy prices.

There may not be a deal on Tuesday, EU diplomats told Reuters, with one diplomat saying that a natural gas price cap was “one of the most complicated and difficult files you can imagine.”

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on December 13 2022 said:
    Other than exposing the fractious atmosphere and divisions among the 27 EU members, a proposed EU price cap on Russian exported gas won’t fare better than the G7 price cap on Russian oil. It will end up in a waste basket because it is neither viable or enforceable.

    Both are doomed to fail miserably.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News