2023-06-13 12:56:00 ET
European natural gas futures surged Tuesday after outages were extended at three major Norwegian gas fields until the middle of July, with the price of the TTF European gas benchmark rising as much as 20% to €36/MWh.
The outages will affect major facilities including Ormen Lange, Nyhamna and Aasta Hansteen, according to notices posted by network operator Gassco.
Traders also are starting to worry over European gas supplies despite unusually high storage levels for this time of year.
While the European Union is on track to meet its target for 90% gas storage in November, concern is growing over short-term demands from a hot summer drawing more gas for cooling homes and businesses, an increase in Asian demand, and more supply disruptions to remaining Russian pipeline gas flows.
U.S. front-month July natural gas ( NG1:COM ) +3.1% to $2.337/MMBtu, poised for a seventh straight winning session in the past eight trading days.
ETFs: ( NYSEARCA: UNG ) ( UGAZF ), ( NYSEARCA: BOIL ), ( KOLD ), ( UNL ), ( FCG )
Tuesday's U.S. gains are partly due to a broader move higher in oil and other energy commodities, but natgas also is helped by rising temperatures that could boost demand and reduce an inventory overhang.
More on natural gas:
- BOIL: Amplified Daily Gains At Expense Of Structural Imbalances
- BOIL: Hopes For A Rebound In Natural Gas Are Looking Grim
- UNG: Much Better Ways To Go Long Natural Gas
For further details see:
Europe natural gas skyrockets as Norway outages extended to July