OAO Gazprom, the world’s largest natural gas producer, tumbled to the lowest level in three months in New York as trading volumes jumped to more than six times the daily average over the past three months.
American depositary receipts of state-run Gazprom, Russia’s biggest company, sank 2.6 percent to $9.04, the lowest since Aug. 2. Volumes rose to 654 percent of the three-month average, while 10-day volatility on the ADRs held at 34.3, the highest reading since Sept. 26, data compiled by Bloomberg show.
Oil, Russia’s biggest export earner, fell the most this year in New York trading as Greece’s debt woes and concerns over the so-called fiscal cliff in the U.S. dent the outlook for global energy demand. Moscow-based Gazprom links its gas contracts to oil prices and refined products with a time lag, a method that dates back to the 1970s, when the fuels were more commonly used in power generation.
President Barack Obama, re-elected yesterday, now faces negotiating with Congress to avoid more than $600 billion in mandated tax gains and spending cuts from next year. Greek Prime Minister Antonis Samaras is seeking parliamentary approval today for more budget cuts to get bailout funds.