The European Union has warned the Dutch government an attempt to set a ceiling on gas prices on the TTF index may lead to an increase in its price. The warning was reported by Reuters.
Citing an email sent to the European Commission, ICE claimed that a limit on how much energy an individual could use each month would disrupt private life and lead to an increase in energy prices for consumers.
The specialist view for the $16 TTF gas futures is that a seller glut or seller exhaustion could happen. This would allow the suppliers who rake in profits from this position to shut it down, risk-free. A resulting short-supply shortage from these sellers and other large buyers at the ceiling price would push up the market & ICE’s plans to eventually raise trading fees to be the collateral in place of their previous “no-fee” policy.
On December 3, the G7 countries and Australia decided on a ceiling on Russian oil at $60 per barrel. The measures should come into force on December 5, along with the EU’s “Oil” Package of sanctions, which implies a ban on offshore oil supplies from Russia.