Since the start of the second quarter, gas flow dynamics around Europe have shifted -- both by route, source and destination -- pointing to continued supply flexibility in the European gas market.
Italy is often a good gauge of whether supply contracts are competitive versus each other and versus the northwest European hubs at any particular time, with Russian gas seemingly the most attractive since the start of Q2.
Italian buyers have import contracts with Russia's Gazprom and Algeria's Sonatrach, but can also import gas from the northwest European hubs, giving them options when long-term contract prices diverge from hub prices.
