Europe’s Swollen Gas Reserves Guard Against Repeat Crisis
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The European Union’s biggest gas inventories in three years are cushioning the region from Russian supply disruptions and helping avoid a repeat of previous crises when prices rose as much as fourfold.
OAO Gazprom, Russia’s state-run gas company, cut supplies to Ukraine yesterday after a deadline for debt payment expired. The move echoed similar disputes that disrupted shipments to Europe during freezing weather in 2006 and 2009. Europe, dependent on Russian gas piped through Ukraine for about 15 percent of its needs, has tried since May 2 to broker a deal to maintain flows. European gas prices, which rallied the most since March yesterday, erased gains today.