EU Gas Rally Unjustified But May Last Through Winter, BNP Says

Supply fears stoking the recent rally in European natural gas prices are unjustified, but the sentiment is so strong that it’s unlikely to ease before the cold season ends, according to BNP Paribas SA.

“Prices have gone gangbusters,” Aldo Spanjer, senior commodities strategist at the bank, said in a note. And, even though the market may be proven wrong in pricing in a tough end to the heating season, a difficult summer and the same intense demand in Asia as last year, he doesn’t “see sentiment turning until the end of the European winter.”