Europe’s Rising Gas-Hedging Costs Show Supply Fears Persist
- October contracts cost more to insure than those for midwinter
- Ukraine and Middle East wars are underpinning supply jitters
A natural gas condensate storage and distribution site in Norg, Netherlands.
Photographer: Peter Boer/BloombergThis article is for subscribers only.
European natural gas contracts for October became more costly to insure than those for midwinter, signaling traders are bracing for possible supply disruptions at the start of the heating season.
The shift follows an incursion by Ukraine into Russia’s Kursk region, near a key gas-transit point that sends fuel toward several countries in Europe. Earlier this month, fears of an interruption to deliveries drove benchmark gas prices to the highest this year.