European natural gas advances with market focused on Russia supply risk

Bloomberg

European natural gas prices rose as the market continues to weigh the risk of
potential supply disruptions and further sanctions against Russia.
The EU has so far been reluctant to ban energy flows from its top gas supplier Russia. Yet, European Commission President Ursula von der Leyen said on Twitter that the bloc and its partners “will keep up the pressure on the Kremlin until it stops the invasion of Ukraine.”
Gas flows from Russia through the direct Nord Stream link and the transit network of Ukraine, the two biggest routes for delivering the fuel to Europe, remained stable. But supplies to Germany via a smaller link,
the Yamal-Europe pipeline crossing Belarus and Poland, dropped to zero after a relatively steady supply over the past week. Flows on that route reversed their direction, with gas running from Germany to Poland instead, a development that the market saw at times last month.
Russia’s invasion of its neighbour last month has roiled commodity markets from gas to grains. While prices have started to ease after an initial bout of volatility, traders remain on edge. Europe depends on Russia for more than a third of its gas supply.
In Ukraine, shelling continued overnight with buildings hit in the capital, Kyiv, officials said, adding that Russian forces were seemingly fortifying existing positions rather than pushing forward. The US, which has raised concerns about China’s support for Russia in the war, called on Beijing to use its influence with Moscow to help end the conflict, and cautioned that there would be consequences for supporting the Kremlin.
The reverse of Yamal-Europe gas flows may mean an increase in withdrawals from gas storage sites in Germany, with many of the recent purchases used by Poland on that route coming from German stockpiles, consultant Inspired Energy Plc said.
Still, gas prices are in check for now, with above-average temperatures forecast across northern Europe and robust liquefied natural gas imports. China resold several US LNG shipments to Europe, a rare move by the world’s top buyer.