Europe Gas Traders Are Already Betting on Price Jump Next Summer

A flurry of bets on European natural gas contracts is signaling some traders have already started hedging for the next stockpiling season even with more supplies set to come online next year.

Options traded Monday predicted that European gas prices could hit €50 next summer, a period when traders are normally building the region’s vast gas stockpiles for winter. The contrarian bet implies about a 60% jump from current levels, which have been near €32 a megawatt-hour for the past few weeks.