Goldman Sachs expects natural gas prices in Europe to rise near record highs recorded in August, after Russia said its main pipeline to Europe would not resume flows as planned.
Analysts, including Damien Corvalin, head of energy research at the U.S. bank, said the news is likely to "reignite market uncertainty regarding the ability of the EU region to manage inventories during the winter," Bloomberg reported.
Russia has refused to resume pumping natural gas through its largest pipeline to Europe, raising the risk of power outages, citing a maintenance problem, while Western governments accuse Moscow of looking for an excuse to cut supplies in response to sanctions imposed after its invasion of Ukraine.
Analysts expect disruption to Russian gas flows across the line to lead to a significant rise in prices from Monday, likely mimicking August's rises.
