4 ms·
The nuances around spot pricing are testing the limits of my knowledge here, but my understanding (which might be wrong!) is that, in the context of gas storage
by nbadg 5y ago
The nuances around spot pricing are testing the limits of my knowledge here, but my understanding (which might be wrong!) is that, in the context of gas storage infrastructure, spot prices have an indirect influence on the fill level, purely based on price speculation. In other words, the good-faith actors would respond to low spot prices by increasing the fill level in storage infrastructure, but because the prices are currently high, there's no incentive for that, and now the German government is trying to figure out a policy solution to increase storage fill level. Seizing control of Gazprom Germania would then play a part in that policy solution.
That being said, just to clarify: the discussions I was referencing in the GP comment suggest that Gazprom has not been acting as a good-faith rational actor, and has in fact been keeping their storage infrastructure even less full than you would expect due to high gas prices.
- mschuster91 5y ago> That being said, just to clarify: the discussions I was referencing in the GP comment suggest that Gazprom has not been acting as a good-faith rational actor, and has in fact been keeping their storage infrastructure even less full than you would expect due to high gas prices. Yes, I merely explained how they were able to deflect the accusations of acting in bad faith for so long. Gazprom was leaving literal billions of dollars on the table by not offering any meaningful spot contracts for months now, until the invasion began - a fact that no one could explain with anything else but war preparations, and war was seen as a ridiculous idea almost everywhere, so public discussion was simply left at "we have no idea what they are doing in Moscow".