EU Starts Natural Gas Price War Trump and Putin Will Love
- Pipeline rules seen removing political risk in European prices
- Dutch contracts are 24% higher than at same time last year
Photographer: Chris Ratcliffe/Bloomberg
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The stage has been set for a European natural gas price war that will help boost demand and enable both Russia and the U.S. to increase sales to the region.
The battle won’t brutalize earnings too much because gas supply is just so profitable in Europe, where prices are more than double the prevailing level in the U.S. And those costs probably won’t drop too far because higher carbon allowances and other climate measures are finally making the fuel’s traditional competitor, coal, less attractive.