2023-06-15 09:35:08 ET
European natural gas prices spiked as much as 24% on Thursday following news that the Netherlands is set to announce it will close Europe's biggest gas site later this year, just as heating season is about to start.
The Dutch government will permanently shut down the Groningen gas field on October 1, Bloomberg reported, due to earthquake risks.
The field has been a key source of gas for much of western Europe since production commenced in 1963, but it also has led to hundreds of earthquakes since the 1980s which have damaged thousands of homes.
After falling for weeks, European natural gas prices have jumped in recent days after outages were extended at three major Norwegian gas fields until the middle of July.
Also with hotter weather settling in and driving cooling needs after subdued industrial gas use weighed on prices in the first months of the year, traders are increasingly concerned that the worst of Europe's energy crisis is not over.
ETFs: ( NYSEARCA: UNG ), ( UGAZF ), ( BOIL ), ( KOLD ), ( UNL ), ( FCG )
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Europe natural gas surges as Netherlands set to close Europe's biggest field