A combination of cold winter weather and worsening geopolitical sentiment has sent European gas prices soaring in the past week, their biggest increase in years. On Friday, gas prices rose nearly 30 percent, the biggest increase since 2023, according to Bloomberg News. Over the course of the week, prices have risen to 36.63 euros per megawatt-hour from a closing price of 28.37 euros last Friday. According to Arne Lohmann Rasmussen, chief analyst at Global Risk Management, the development is the result of several simultaneous factors. Marketwire writes.
- The mood has completely turned for the European gas market - you could almost call it a perfect storm, where fundamentals, geopolitics and speculative activity are all pushing the market upwards, says Arne Lohmann Rasmussen, chief analyst at Global Risk Management.
Along with the various uncontrollable factors, European gas storage facilities are also less full than usual ahead of winter. Storage facilities are now below 52 percent. filled against an average of around 67 percent over the past five years, which has increased the market's focus on security of supply. Demand for gas has also been boosted this week by the shutdown of several French nuclear power plants due to a storm.
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