Europe Gas Prices Soar 20% as Market Shows Signs of Tightening
- Month-ahead Dutch futures jump from rock-bottom levels
- US exports of LNG are more profitable to Asia in coming months
A natural gas power plant in Muiden, Netherlands.
Photographer: Peter Boer/BloombergThis article is for subscribers only.
European gas futures jumped the most since March amid signs of a tighter liquefied natural gas market and potentially stronger Asian demand for the fuel.
The benchmark month-ahead Dutch contract settled 20% higher at €28.48 a megawatt-hour, after last week skidding to the lowest level in two years. The UK equivalent soared by 22%. The surge could signal the bottom of the market has been reached for now, with traders moving quickly to build positions.