Germany’s Habeck: Gas is from now on in short supply in the country

Dhwani Mehta FXStreet

German Economy Minister Robert Habeck said on Thursday, gas is from now on in short supply in the country.

Further comments

The current situation should not lull us into a wrong feeling of security.

We are now called on to reduce gas consumption, looking ahead at winter.

Wants to underscore that this situation was always a threat.

Political mistake in past not to build up renewable energy, needs to be rectified immediately.

Regardless whether we trigger price clause, consumers are going to be paying more.

All political measures must be taken to ensure we have enough gas, that burden shared fairly.

Triggering price increase clause would mean companies can immediately pass on price increases.

If gas doesn't come via Nord Stream 1 after maintenance, then further measures needed.

Nations going it alone cannot work in this situation.

Development of LNG terminals is coming along well.

Are some time away from not being able to ensure supply, but need to take precautions.

Also read: Economy Ministry: Germany enters Phase 2 of emergency gas plan

Market reaction

EUR/USD is consolidating the latest drop to 1.0499 on the above comments. The pair is currently trading at 1.0514, down 0.45% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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