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Bloomberg: Volkswagen may earn €400 million from natural gas trading

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natural gas trading

German carmaker Volkswagen could earn about €400 million from natural gas trading. The company bought gas at a low price in 2020. It was written by Bloomberg agency citing a report by sources.

According to the sources, the money that will get Volkswagen from such speculation, will be able to offset the costs of using coal and cover the costs associated with the replacement and modernization of machinery.

It is specified that the concern is planning to sell around 253 million cubic meters of gas, which is enough to supply 200 thousand houses with gas heating for a year. The gas trading company Volkswagen wanted to use this fuel at its two Wolfsburg power plants in 2023 to reduce using coal. But in the face of shrinking gas supplies from Moscow, the company still opted to use coal instead of fuel.

The gas, which the German company plans to sell, was bought through the supplier Wingas GmbH in 2020 for $316.5 per thousand cubic meters. Now the market price exceeds $2,000 per thousand cubic meters.

Earlier we reported that the strengthening of the US dollar caused panic among participants of the world currency market.

Economy

Credit Suisse bank CEO says “critical moment” 

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credit suisse and deutsche bank

One of the largest banks in the world, Credit Suisse bank is experiencing a “critical moment”, said the CEO of the financial institution, Ulrich Kerner, in a memo. It is reported by TheStreet.

He expressed his understanding that there is a lot of uncertainty and speculation both inside and outside the company. According to Kerner, there will be more rumors and speculations in the future.

The outlet emphasizes that Credit Suisse bank is currently struggling for survival. A year ago the market capitalization of Credit Suisse was $22.3 billion; now it is only $10.4 billion. Over the past year, the stock of the financial institution has fallen by 56.2%.

If Credit Suisse goes bankrupt, the market could be in for a shock, experts predict. Kerner argues that Credit Suisse is in restructuring for a longer-term and sustainable future.

Earlier it became known that the second largest banks in Switzerland, Credit Suisse and Deutsche Bank, faced financial difficulties. Against this background, the share price of Credit Suisse on Monday, October 3, declined to a historical low of 3.518 francs, or about $3.55.

Earlier we reported that the European Commission is preparing for possible blackouts due to the crisis.


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Economy

China makes hundreds of millions of dollars on reselling LNG from the US to European companies

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reselling LNG from the US to Europe companies

China earns hundreds of millions of dollars on reselling LNG from the US to European companies. Local Asian companies are sending tankers carrying U.S. LNG to help the European Union prepare for the winter heating season, The Wall Street Journal reported, citing sources.

Reselling LNG from the US to European companies is observed due to the reduction in demand for gas to China. As a result, local companies profitably sell surplus feedstock abroad, primarily to Europe.

“In the first eight months of this year, only 19 LNG ships docked at Chinese ports, compared to 133 such ships in the same period last year, meaning a significant portion was diverted to buyers in Europe, as well as Japan and South Korea. US LNG exports to Europe are profitable for China and the United States,” the article says.

On October 3, analysts at the International Energy Agency (IEA) predicted that in February 2023 the storage of gas in the European Union will be up to 5% empty without supplies from Russia. At the same time, the situation will be affected by the reduction of LNG imports to Europe. For comparison, at the end of September 2022, gas storages in EU countries were 90% full.

Earlier we reported that Europeans derailed the EU energy saving plan due to the refusal to save gas.

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Economy

Europeans derailed plans to save energy and reduce EU energy consumption due to refusal to save gas

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EU energy commission

Europe has failed its first winter test of EU energy consumption because of Europeans who refused to save gas. This was stated by Bloomberg analyst Javier Blas.

“If Europe had been a schoolboy, it would have passed its first energy conservation test last week. It failed. And that doesn’t bode well for the much tougher tests that lie ahead in January,” Blas said.

According to him, the demand for gas from the population of Europe is seasonal. At the same time, the EU energy commission did not know how residents would react to the call to save money. However, the first frosts have shown that people are not ready to reduce their energy consumption. During the recent autumn cold snap in Germany, for example, residents increased their gas consumption by 14.5 percent, higher than the five-year average.

He added that the high demand for gas should be a wake-up call for the EU energy commission, which should use concrete examples to show people what they need to do to save energy. At the same time, politicians should offer all possible options to save energy and distribute them before the onset of cold weather, which could occur in the coming weeks.

Earlier, we reported that businesses predicted a 500 percent increase in energy costs in the U.K.

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