A European Commission plan for a gas price cap risks reducing liquidity in Europe's gas market, posing a threat to how it functions, head of trading at Norwegian oil company Equinor told Reuters, but its own gas deliveries will not be affected.
is to shield European consumers from the surge in energy prices they have faced since Russia invaded Ukraine, and which have helped to fuel inflation.
But he said this was no longer a "big issue", with margin calls now only "a fraction" of what they were at the end of August.The European Commission is proposing to introduce a cap to the front-month contract on Europe's main gas trading hub the Dutch Title Transfer Facility , which sets Europe's benchmark and is the market's most liquid contract. But member states disagree over the details.
"We might also trade a little bit less in the financial market than we otherwise would because the liquidity will be lower. That means the bid-ask spread will typically be higher and we will have a less well-functioning market," he said.
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