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The surge in energy prices hitting Europe has eased somewhat, as Russia tries to use its influence as an oil and gas superpower to help – and gain approval for its controversial gas pipeline under -marin Nord Stream 2.

UK gas prices fell from record levels after President Vladimir Putin suggested state-backed Gazprom could increase supplies to help Europe avoid a full-blown energy crisis .

In a televised meeting on Wednesday, Putin hinted:

“Think about the potential increase in supply in the market, only we have to do it with caution. “

Moscow appears to be using the crisis to push Nord Stream 2 to get the green light.

Russian Deputy Prime Minister Alexander Novak said approval of Nord Stream 2, which links Russia to Germany under the Baltic Sea, could curb the spike in European gas prices.

Novak said at a meeting of government officials and heads of energy companies.

“I think there are two factors, which could cool the current situation somewhat. First of all, of course, this is certainly the fastest certification and clearance completion for gas supply via the completed Nord Stream 2 ”,

The comments pushed gas prices back from record levels last night, in a wild trade.

UK gas contracts for November delivery jumped nearly 40% early Wednesday to over 400p per therm, but closed 9% lower at 271p.

What about this intraday volatility. I present the gas prices in UK. pic.twitter.com/YJoVVIOxxd

– Neil Hume (@humenm) October 6, 2021

But Nord Stream 2 is controversial – it bypasses Ukraine, which depends on existing pipelines for its income, and has yet to be certified by the German regulator.

Last March, US Secretary of State Antony Blinken warned that it was “a Russian geopolitical project intended to divide Europe and weaken European energy security”.

Related: US warns Nord Stream pipeline is “Russian geopolitical project”

Nord Stream 2 needs approval from the energy regulator in Berlin to start operating commercially. They need to be convinced that it complies with EU ‘unbundling’ rules separating gas transport from production and sale – a certification process that could take months.

And some MEPs fear that Nord Stream 2 will decide to start the streams without the necessary approvals. Senior lawmakers on Tuesday called on the European Commission to exercise all its powers to ensure compliance with EU law, Bloomberg reports.

With Natural #Gas prices are skyrocketing #UE is on the verge of a state of emergency.

However, today #Putin announces that he is ready to help stabilize the gas #Marlet.

That being said, it is obvious that this stabilization will only happen if Nord Stream 2 is launched. pic.twitter.com/tROIBn2Y0x

– Waterpier Group (@WaterpierGroup) October 6, 2021

European stock markets are poised to recover from yesterday’s losses, with the FTSE 100 called more than 1%.

Related: Biden: Republicans play ‘Russian roulette’ with US economy on debt ceiling – as it happened

Investors are relieved that Republicans and Congressional Democrats have said they will consider an interim measure extending the country’s borrowing limit until December.

It would be a temporary solution to the US debt ceiling crisis, which threatens an unprecedented default.

European opening calls:#FTSE 7062 + 0.94%#DAX 15125 + 1.01%#CAC 6564 + 1.10%#AEX 770 +1.12%#MIB 25,821 + 0.84%#IBEX 8,855 + 0.91%#OMX 2242 + 0.94%#STOXX 4058 + 1.13%#IGOpeningCall

– IGSquawk (@IGSquawk) October 7, 2021

Agenda

• 9am BST: Italian retail sales for August
• 9:30 am BST: Energy UK 2021 Annual Conference
• 9:30 a.m. BST: ONS Business Outlook and Impact on the UK Economic Survey
• 12:30 p.m. BST: ECB Monetary Policy Meeting Accounts
• 12:30 p.m. BST: Challenger inquiry into US job cuts in September
• 1:30 p.m. BST: US Unemployment Weekly Report