Euro Slides To 20-Year Low After Putin Halts Gas Flows To Europe

[RandySF]

TOPLINE The Euro dropped to a two-decade low against the U.S. dollar on Monday morning, gas prices soared and major European stock indexes dipped after news Russia had halted gas flows through a critical pipeline for the foreseeable future, deepening fears of an impending energy crisis this winter.

European gas prices jumped as high as 282 euros per megawatt hour on Monday morning, shy of August’s record high following Russia announcing another round of maintenance on the Nord Stream 1 pipeline. After the latest turmoil and indefinite shutdown, analysts expect gas prices to reach new record highs this week.

Russia’s state-controlled energy firm Gazprom announced on Friday that the Nord Stream 1 pipeline, which had been closed for maintenance work, would remain closed indefinitely following the purported discovery of an oil leak. The conduit is the single biggest gas pipeline from Russia to Europe and officials throughout the bloc have accused Moscow of weaponizing energy supplies to retaliate against Western sanctions for invading Ukraine. Before the war, Europe relied on Russia for around 40% of its natural gas. Cuts to the flow of gas, as well as repeated shutdowns have worsened the already-turbulent market. Soaring prices and dwindling supplies have triggered an energy crisis in Europe and countries fear a tough winter lies ahead marked by energy rationing and shortages. The Kremlin strongly denies it is playing politics with its resources—the indefinite shutdown was announced shortly after nations agreed to cap the prices of Russian oil exports—and blames sanctions for being unable to properly service equipment. European officials dispute this interpretation of sanctions and Siemens, which maintains the equipment Russia claims is faulty, says the issue as described should not halt gas deliveries.





https://www.forbes.com/sites/nicholasreimann/2022/09/03/in-photos-gorbachev-laid-to-rest-after-moscow-funeral-that-putin-didnt-attend/?utm_campaign=forbes&utm_source=twitter&utm_medium=social&utm_term=Gordie&sh=4fa9937b2167

[DFW]

1. I don't know if it will stay under a dollar

This morning, the Euro has been fluctuating between a low of 98.77¢ and a high of 99.43¢

For someone like me, who is paid in dollars but lives in Euros, it is welcome relief, especially with the high cost of living here. It makes up for a lot of years when I had a cost of living up to 40% higher than my colleagues back in Texas.

However, for American companies that export their products to the Euro zone, it is a nightmare, since it makes all our products more expensive to the Europeans, decreasing their eagerness to buy from the USA. This, in turn, affects the bottom line of the US economy, and will hurt at least those companies (and thus their employees) who depend on this business to stay afloat.