European Gas Prices Stable as Nord Stream 2 Remains in Focus
European gas futures held steady on Wednesday, as uncertainty surrounding the controversial Nord Stream 2 pipeline to Germany remains a focus point for the market.
Prices rose the most in a week on Tuesday after the U.S. imposed sanctions relating to a pipeline to transport Russian gas to Europe.
“New sanctions from the White House on Nord Stream 2 look to have limited physical effect, but compound the political issues the European supply system is facing ahead of an uncertain winter,” Alfa Energy said in a note.
Benchmark Dutch prices for next month rose 0.6% to 91.45 euros a megawatt-hour, while the U.K. equivalent advanced 0.4%.
Liquefied natural gas prices in Asia are also on the rise again after falling back from a record high last month as the region’s buyers are quietly trying to secure enough of the fuel without sparking fears of shortages.
|Market stories, analysis|
©2021 Bloomberg L.P.