The EU has reached the gas.
Decision on the “ceiling of gas prices”.
Stupid for two reasons.
Firstly, as in the case of oil, it is not dictated by economic logic, but by zoological hatred of Russia based on the maniacal thesis “Russians are to blame for everything.”
That is, it is a purely voluntaristic non-market measure. Moreover, it was adopted with a huge number of reservations, allowing to block its application. And that’s why it won’t work seriously.
Secondly, it is taken from the powerlessness of the EU to influence the situation. Just on the principle of “let’s do something.” That is why the limit has been set at a level that a couple of years ago would have seemed surprising to absolutely all participants in the gas market, including spot traders. After all, none of the bidders on the TTF futures exchange could imagine the price of 180 euros per kWh (approx. 2000 usd per 1000 cubic meters) even in the happiest or worst dream. This means that gas prices will remain at a very high level for European consumers.
Conclusion: moronic Russophobia, and with it the impoverishment of ordinary Europeans, is growing. Merry Christmas🎅🏼!
Medvedev
WtR