The European Commission proposed a cap on gas prices of €275/MWh. EU Energy Chief Simson emphasized that this mechanism is not a silver bullet for lowering gas prices and will be used only as a last resort. In his opinion the EU is still vulnerable to damaging price increases. Nevertheless these news had little impact on gas prices as traders are focusing on colder weather forecasts in the US, the delay in Freeport's restart and a possible rail strike. Workers at the largest US rail union voted against a tentative contract deal reached in September, raising the possibility of a year-end strike that could disrupt coal deliveries and force power generators to burn more gas.
Today's EU decision had a limited impact on NATGAS, which continues to trade above major support at $7.12/ MMBtu. Source: xStation5
