Europe Gas Prices Soars 20% as Market Shows Signs of Tightening

European gas futures jumped the most since March 2023 amid signs of a tighter liquefied natural gas market and potentially stronger Asian demand for the fuel. The benchmark month-ahead Dutch contract settled 20% higher at €28.48 a megawatt-hour, after skidding to the lowest level in two years the week of June 2. The U.K. equivalent soared by 22%. The surge could signal the bottom of the market has been reached for now, with traders moving quickly to build positions.

“A perfect storm hit gas hubs June 5,” said Tim Partridge, director of energy markets at utilities consultancy Eyebright Ltd. Factors behind the day’s move include an ongoing outage at the Norne field in Norway, bullishness filtering through from Saudi Arabia’s pledged oil-supply cuts, and U.S. shipments of LNG favoring Asia over Europe.

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