By Ketki Saxena
Investing.com -- Today's Natural Gas Note: As of 11:20 p.m ET, Natural Gas futures were trading at USD 5.533, up 3.81% so far today.
U.S. natural gas futures tracked EU futures higher (+8.4%) as the bloc braces for Russia to cut off gas supplies. Earlier today, Germany set into motion an emergency plan to secure energy and ration supplies, indicating the country fully expects Russian President Vladimir Putin to cut off gas supplies.
The deadline for Putin’s demand that the EU pay for Russian Gas in the Ruble is tomorrow, with both sides still at an impasse.
The EU argues that paying for gas in the Ruble is a “clear breach of contract”, while Putin has ordered Russian gas maor Gazprom (MCX:GAZP) and the Russian central bank to receive payments in the Ruble from the beginning of April.
However, reports from the Kremlin earlier today indicate that Russia may not immediately enforce its demand or turn off gas supplies.
Despite the seeming delay to the Ruble gas payment deadline, Russia does not appear to be backing down from its demands. The Kremlin is doubling down on its stance that Russian exports be paid for in the Ruble, with Russia's top lawmaker today warning the EU that major Russian commodity exports - including oil, grain, metals, fertilizer, coal and timber - could soon be priced in rubles.
U.S. Natural gas futures also continue to be supported fundamentally by low stockpiles, flat production, and increasing demand internationally as Europe scrambles to replace Russian gas. Natural gas prices were also helped higher today after two days of volatility as April contracts expired yesterday, and May starts as the first month today.