European gas prices set for jump on transit risks - Bloomberg
Kyiv • UNN
Gas futures in Europe are approaching their highest levels since December on concerns about supplies from Russia. Prices have risen 45% since the start of the stockpiling season due to numerous outages.
Natural gas prices in Europe are set to jump week-on-week as fears of possible disruptions in Russian fuel supplies through Ukraine dominate the market, Bloomberg reports, UNN writes.
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On Friday, benchmark futures hovered around €40 per megawatt-hour, trading near their highest levels since December. Prices have risen by more than 45% since the start of the stockpiling season, as numerous outages coincided with traders' attempts to buy fuel for the winter.
It is noted that amid the events in the Kursk region of the Russian Federation, there were fears about the "key gas transit point". "While Russian flows through the Sudzha point are continuing for now, traders are bracing for a possible halt, which would hurt European economies that still depend on the fuel. Moldova put its gas sector on "early alert" on Thursday," the publication said.
The summer has been volatile for Europe’s gas market even before the latest developments, as heat waves boosted global competition for liquefied natural gas and numerous producers have faced disruptions.
"Fears of supply shortages continued to shape gas price developments this week," Rystad Energy analyst Christoph Halser wrote in a note. "The latest attack could jeopardize ongoing talks between Azerbaijan, Ukraine and the European Union for the continued flow of gas through Ukraine after the current transit agreement expires at the end of the year."
"A sudden and earlier halt would come as a shock for nations such as Slovakia and Austria, which still rely on that supply and could see higher gas prices for companies and consumers if it’s cut off," the newspaper said.
Dutch front-month futures, Europe’s gas benchmark, fell 0.6% to €39.87 a megawatt-hour at 11:26 a.m. in Amsterdam.
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