Fears Of Supply Chains Wreckage Drive Commodity Prices up, Put Dent on European Currencies

Natural gas prices in Europe hubs renewed rally on Friday due to concerns about cold weather forecasts and continued uncertainty about Russian gas supplies to Europe in the light of military action in Ukraine.Meanwhile, the Ukrainian government's ban on the export of gas stored in the country, including gas normally held by Western European operators, has not affected transit flows of Russian gas, analysts at Engie EnergyScan said.Transit gas supplies at the Slovak-Ukrainian border crossing at Velké Kapušany stood at 882 gigawatt-hours a day on Friday, while Russian deliveries to Europe are estimated to be up 129 gigawatt-hours a day from the previous week as long-term contract holders solicit more gas after a spike in spot prices, according to Refinitiv analysis.Fears of more sanctions due to protracted military action in Ukraine that may affect global trade and supply chains put pressure on the currencies of European countries, such as EUR, GBP, SEK, NOK and DKK. However, being near levels of strong multi-month support they are poised to rebound should Russia-Ukraine negotiations which will be held on March 5 and March 6 pave the way for de-escalation.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/fears-of-supply-chains-wreckage-drive-commodity-prices-up-put-dent-on-european-currencies"
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