Stocks Soar On Report Russia Will Restart Nord Stream 1 Gas Flow On Thursday

Tyler Durden's Photo
by Tyler Durden
Tuesday, Jul 19, 2022 - 03:23 PM

European stocks are soaring, with German industrials leading the charge, and European NatGas prices are sliding, after Reuters reports, citing two people familiar with the export plans, that Russian gas flows via the Nord Stream 1 pipeline are seen restarting on time on Thursday after the completion of scheduled maintenance.

The pipeline was expected to resume operation on time, but at less than its capacity of some 160 million cubic meters per day.

"[Gazprom] will return to the levels seen before July 11," one of the sources said of the gas volumes expected via Nord Stream 1 from Thursday.

The reaction in NatGas is modest for now - perhaps due to the constrained capacity...

But Germany's DAX is outperforming...

Led by Industrials (and Utilities)...

US equities also extended gains as the tail risk of 'no gas' is reduced (reportedly)...

There is no official confirmation and we note this is just a few short days after Gazprom declared force majeure retroactively... and the whereabouts of the turbine that is at the center of the debacle remains unknown for sure.

A final decision will still need to be made by the Kremlin, one of the people cited by Reuters said, but we note that Gazprom has confirmed that it has sent small volumes of gas as it is conducting pipeline "pressure equalization."

As a reminder, earlier this morning - also based on anonymous sources - the Wall Street Journal reported that the European Commission did not expect the pipeline to restart on the target date of July 21.