AMSTERDAM: European natural gas posted its biggest monthly gain in three and a half years after cold spells and a rapid depletion of fuel inventories upended market sentiment.
Benchmark futures rose last Friday, putting this month’s advance at around 40%.
That’s the biggest such increase since June 2022, during the energy crisis triggered by Russia’s invasion of Ukraine.
January has been jumpy, reflecting renewed concerns about Europe’s fragile gas balance.
In addition to freezing weather and rapidly dwindling inventories in the region, a winter storm on the other side of the Atlantic caused US prices to spike, setting off a frantic scramble among European traders to cover earlier bearish positions.
Fears about US supplies have since eased, but traders remain on high alert amid colder weather forecasts and persistent geopolitical risks.
In particular, they’re monitoring the situation in Iran as US President Donald Trump’s threats against Tehran keep broader energy markets on edge. — Bloomberg
