European natural-gas costs hit yr’s peak as a result of Texas freeze and EU chilly snap

Investing.com — European natural-gas costs have surged again to 50 euros per megawatt-hour, marking the very best stage for the reason that first buying and selling day of the yr. This worth hike is attributed to the freezing climate in Texas, which poses a danger to U.S. liquefied pure gasoline (LNG) exports.

The sudden improve in costs appears to have been triggered by an outage on the Freeport LNG export terminal within the U.S., based on analysts at ING. The chilly spell in Europe has additional added to the availability issues.

The analysts famous that Europe must import extra LNG this winter as a result of disruption of Russian pipeline flows via Ukraine, coupled with a spike in demand. They additional acknowledged that the European Union’s gasoline storage has now dropped to 59%. The area is now striving to maintain it above the European Fee’s goal of fifty% full by February 1.

At current, the benchmark Dutch TTF contract is buying and selling 0.8% decrease at 49.64 euros a megawatt-hour. This case underscores the fragile stability of provide and demand within the area’s vitality markets throughout the winter months.

This text was generated with the help of AI and reviewed by an editor. For extra info see our T&C.