Europe’s Gas Traders Rush to Buy Protection as Supply Fears Rise
- Ukraine’s Kursk incursion, Middle East tensions stoke buying
- Speculative long flows are starting to look stretched, EA says
Sheep graze near natural gas power plant in Muiden, Netherlands.
Photographer: Peter Boer/BloombergThis article is for subscribers only.
Traders rushed to snap up protection against surging European gas prices, signaling they expect more disruption to supplies with the heating season less than two months away.
Implied volatility linked to Dutch gas options — a measure of how expensive the underlying derivative contracts are — has jumped in August, indicating fears of supply shortages. Options volume was up 71% last week compared with a year earlier, according to data from Intercontinental Exchange Inc.