On Monday this week something peculiar happened in the European natural gas market: the spot price went negative. That is, traders were paying other traders to take contracts for gas deliveries off their hands. EU energy prices are artificial! There is no scarcity. This is a planned strike on the EU
(media.greatawakening.win)
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So, in Germany, the Greens put a bill through the Bundestag that would put a 90% windfall profit tax on every Euro of energy profit.
They've all but nationalized the electricity market in Germany. It's a cost-plus model. Two days later, the Netherlands and France walked away from the Energy Charter Treaty, a treaty that basically prevented any attacks on energy companies through legislation. They could craft all the climate legislation they wanted, but it couldn't overtly harm energy investors. I think both are about to do what Germany has just done.
Davos has been trying to make conventional sources of energy uninvestable, and I think this is their big move towards that.
Maybe all it means is traders are trying to offload contracts they know or think they will not be able to fulfill, i.e. breach of contract, hence hefty fines plus compensation and/or reparations to be paid to clients. This guy's interpretation of what this means in relations to the gas market is just his opinion and I think it is bonkers but that's just my opinion...
This.
Futures markets are almost always hardcore B/S because most of the participants playing them are day traders, not companies/individuals using futures to hedge on their input costs for business. This sound similar to how oil prices went "negative" in 2020, where the day traders were all abandoning ship because they couldn't actually take delivery on the future contracts they owned.
Same with the price of $GME, it's entirely artificial. Hedgies r fukt.
Haha When paper contracts and naked shorts stop. They're printing their way down out of this
Today, but if not today, then tomorrow.
https://unherd.com/thepost/is-there-a-bubble-in-the-european-gas-market/
It makes some sense if there is a shortage. If they are all expecting to not be able to honor those contracts it makes sense they would be willing to lose a little to not be holding the bag.
Unless there is something I am missing.
I hate these people.
Yes and No, its future guidance they make these moves on. So europe is still in hot water; can shit turn around maybe but right now sentiment is still negative
Has anyone verified this from another source?
I heard this was entirely caused by a number of Liquid Natural Gas LNG ships queuing at the EU's very limited regasification facilities, unable to get landing slots.
LNG ships queue to unload in Europe
Yep. doesn't make sense to me, but very interesting.
Surprise!! /s