Europe Gas Jumps as Ukraine Warns About Wednesday Transit Risks
- Ukraine gas grid declares force majeure amid military auctions
- Benchmark futures reverse earlier losses amid supply worries
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European natural gas futures reversed earlier losses, after Ukraine’s network operator warned about risks on Wednesday to transit flows from Russia.
The benchmark front-month contract jumped as much as 8.1% on the news as traders remain on edge, even though prices have eased recently due to a steady stream of liquefied natural gas and warm weather. Russia supplied about 40% of the European Union’s gas demand last year, and about a third of that transited Ukraine, making it a linchpin in the continent’s energy security.