Gas contracts in the United Kingdom soared nearly 40% but eased after comments of Russian President Vladimir Putin, FT reported.
- Natural gas prices in both the UK and Europe surged to nearly ten times year-to-date. With contracts for November delivery up almost 40% as trading opened to hit over £4 per therm.
- Prices moderated hours later, with contracts declining to £2.87 after Putin signified a possible state-backed monopoly in the country’s monopoly export Gazprom, which would hike supplies to Europe.
- Putin’s remarks appeared as efforts to calm markets amid concerns that Russia is holding back supplies pending approval from the controversial new Nord Stream 2 pipeline, bypassing Ukraine to send gas to Germany.
Analysts believe that concerns are not really about prices anymore, as the country seeks to secure supplies for the coming weeks and months.