Nordstream restrictions affecting Fix/No Fix decision?

wibbler

Looks like Putin is willing to restrict gas to Europe: https://www.bbc.co.uk/news/business-62291458

Does this news, and the implication he will keep doing it, flip the Fix/No fix decision in favour of Fix?

Evan3020

Not really, if the gas is shut off you won't be able to use it what ever the price?

spot1034

Wholesale prices have risen and this affects the level of the next price cap or, once the period for calculating the next one has passed, we go on to the one after next. Ongoing high prices mean a higher price cap in the future.

Of-course this means fixes are likely to go up further as well.

MattMattMattUK

wibbler said:

Looks like Putin is willing to restrict gas to Europe: https://www.bbc.co.uk/news/business-62291458

Does this news, and the implication he will keep doing it, flip the Fix/No fix decision in favour of Fix?

By the time it is in the news the it is too late to fix. Some fixes have already been withdrawn today, most will have already been costing in this kind of thing and as others have said, it does not matter what the price is if the gas runs out.

What_time_is_it

Perhaps this news, and the likelihood of a long drawn out war, might make longer fixes (i.e. 2 year fixes that cover the next 2 winters) more attractive. Personally I've been wary of fixing for more than 1 year as there is so much uncertainty at the moment and the energy market is so clearly and totally broken that it might be structured very differently this time next year.

But make no mistake, regardless of whether you yourself have secured a decent fix term deal, widespread fuel poverty is a very very dangerous thing and will lead to mass civil unrest.

wakeupalarm

 A short term blip may have had a chance of being managed with a financial support package, but long term sky high prices will become unaffordable for many, so either way it doesn't make a difference to fix or not.