Commodities

Europe Gas Jumps as Germany Seeks to Subsidize Storage Refills

  • Freezing weather in the US adds to tightness in the market
  • Global gas supply to remain tight this year, IEA warns
An LNG tanker in Cameron, Louisiana, US.Photographer: Mark Felix/Bloomberg
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European natural gas jumped after Germany signaled it may subsidize the refilling of storage sites, spurring spot demand for the fuel and further driving a seasonal price spread.

The plan, still under discussion, suggests Germany is willing to pay to ensure that gas storage is refilled during the summer for the next winter even when market pricing doesn’t encourage that.