European gas prices jump

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FE Team | Published: October 13, 2023 23:19:21

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European gas prices rallied in the week to Oct. 13 as geopolitical risk factors trumped supply and demand fundamentals with coal and carbon prices only registering moderate gains, reports The Economic Times.
Gas price benchmark TTF front-month jumped 46 per cent over the course of the week to a Eur52.95/MWh close Oct. 12, the highest in almost eight months, according to Platts assessments for S&P Global Commodity Insights.
"We cannot see the link of such spike in prices with anything related to fundamentals," a Switzerland-based gas trader said.
Market participants indicated covering of short positions contributed to the sharp rebound across gas and power markets just ahead of the start of the winter heating season with geopolitical risks trumping supply and demand fundamentals.
EU gas storage was 97 per cent full Oct. 10, according to Gas Infrastructure Europe data
"Apart from the geopolitical uncertainty following the war outbreak in the Middle East, the pipeline sabotage in the North Sea and the suspected Russian involvement causes fears that similar things could happen to other and more critical pipelines in Europe," broker Energi Danmark said in a note Oct. 13.
Finland is investigating damage to the Balticconnector gas link between Finland and Estonia amid signs it was caused by a "possible deliberate act."
The Platts assessments for spot LNG cargoes into Northwest Europe jumped 50 per cent week-on-week to $15.72/MMBtu by Oct. 12.