'Crunch time': EU members in last-minute push to compromise on gas price cap

European Union nations are engaged successful crunch talks to headdress state prices morning, with vigor ministers Monday seeming optimistic astir a woody pursuing 2 months of pugnacious negotiations.

"There volition beryllium hard discussions, but I americium assured successful our quality to scope a corporate agreement," French Energy Minister Agnes Pannier Runacher said.

A draft substance seen by Reuters would spot a headdress triggered if front-month declaration prices connected the Dutch TTF, Europe's main benchmark for earthy state prices, transcend 188 euros ($200) per megawatt hr for 3 days.

Runacher said France would beryllium "comfortable" with a scope of "160 to 200 euros [eur/MWh], and we consciousness that this terms [range] converges with that of the presidency."

On Monday morning, ministers referred to the measurement arsenic a "gas marketplace correction mechanism" alternatively than a cap. Belgian Energy Minister Tinne van der Straeten said the draught substance refers to the connection nether this name.

The determination is intended to shield consumers from the sharply higher prices that person deed the bloc pursuing Russia's penetration of Ukraine. European earthy state prices reached historical levels of astir 350 euros per megawatt hr successful August, erstwhile traders were acrophobic astir the bloc's unity successful warring the vigor crisis.

Opinion has been divided connected however precocious the headdress should be, and whether the marketplace involution is simply a risk to fiscal stableness successful the euro area. On Dec. 5, the EU implemented a afloat prohibition connected Russian seaborne crude lipid imports to the portion and volition travel up with akin measures targeting Moscow's different lipid products successful aboriginal February.

The European Central Bank warned earlier this period that capping earthy state prices could make instability successful fiscal markets.

"The much safeguards, the much information nets determination are, the much tolerant we tin each beryllium with the number, but it would beryllium irresponsible to conscionable acceptable a fig and accidental this is strict and we don't bash thing else," German Economy Minister Robert Habeck said.

The cardinal slope is not the lone instauration informing astir the imaginable marketplace ramifications of a terms limit. Market relation ICE (Intercontinental Exchange) — the relation of a cardinal natural-gas market in Europe — has threatened to region trading from the bloc if the EU goes up with the measure, according to the Wall Street Journal.

"Germany has asked for beardown safeguards with regards to information of supply, but besides stableness connected some the vigor and fiscal markets. These are concerns that we each share. It's not a interest of Germany alone, it's a interest of each 27 of us," said Belgium's van der Straeten.

"This situation is not over, determination is [the] adjacent retention play coming," she added.

Miriam Dalli, Malta's vigor minister, said it was "crunch clip for reaching a compromise" that makes consciousness for each subordinate states and tin "calm the markets" portion ensuring information of state supply.

She said talks had progressed a agelong mode from the European Commission's archetypal connection of a 275 euros per megawatt hr cap, which respective subordinate states argued was excessively precocious and improbable to beryllium triggered.

The Dutch TTF traded astir 108.8 eur/MWh astatine 10:00 a.m. Monday CET, its lowest level since Nov. 11.

Greek Energy Minister Konstantinos Skrekas said countries had a "clear mandate from our leaders to travel retired with a solution to the headdress today."

"We wouldn't beryllium truthful insistent if we were not convinced that this is the champion solution for European citizens," helium said, adding that immoderate headdress betwixt 150 and 200 eur/MWh would beryllium effective. Asked astir the suitability of a terms ceiling astatine 188 eur/MWh, helium said specified a level would "give the close signals to the market."

Estonian Finance Minister Riina Sikkut besides said she was "positive" a compromise could beryllium reached but added that it was hard to accidental precisely what it would be. She expressed assurance that "good news" would look by Monday evening.

Jozef Sikela, manufacture curate of the Czech Republic, and Kadri Simson, European commissioner for energy, are owed to present a property league astatine 5:30 p.m. CET.

CNBC's Ruxandra Iordache and Hannah Ward-Glenton contributed to this story.