Europe's energy crisis is taking an ugly turn. Here's what you want to know.
Top of the morning, markets crew. I'm Phil Rosen reporting from Los Angeles. Monday's behind us and the week is still getting started, but there's already a slate of happenings to sort through.
Thanks to Russia's gas pipeline maneuvers, we've got lots of ground to cover this morning. Below, I'm breaking down what you want to know about Europe's energy crisis.
Markets wait for no sleepy-eyed professionals. Let's get started.
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1. Europe's natural gas crisis is going from bad to ugly. And the continent's winter stockpiles could prove insufficient as Russia slashes gas flows, Bank of America analysts wrote in a Monday note.
Russia's Gazprom has been cutting gas flows via Nord Stream 1 all month, and now Germany is firing up oil power generation to diversify from the key fuel as gas supplies dwindle.
This comes after years of European nations shifting away from burning most fossil fuels to better match climate goals. But with Moscow's hand on the tap, there's been a reversal of the trend.
But Germany's situation isn't unique. Russia just halted natural gas deliveries to Latvia too, the Wall Street Journal reported Monday. Gazprom cited a violation of conditions as reason for the stoppage, with European gas prices jumping 6% in response.
Things are deteriorating at such a rate that even those down under are getting looped in — the Australian government warned of a liquefied natural gas shortfall, and asked exporters to divert supplies to the domestic market.
Commentators predicted that any supply cuts from Australia could push global prices even higher.
Bank of America leaves us with a difficult question: "With Nord Stream 1 pipeline flows at 20% of capacity, storage builds into winter could be insufficient and the EU is now planning for widespread demand rationing. How did this happen?"
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Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn).
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.