The volatility in European gas prices in recent days has highlighted a conundrum for traders: whether the energy crisis is still acute enough to justify importing additional seaborne liquefied natural gas cargoes during the low-demand summer months.
The price of the European gas benchmark Title Transfer Facility (TTF) rose as much as 20 per cent to €36 per megawatt hour on Tuesday, extending a run that began last week when it rallied for the first week in 10.
TTF has fallen more than 90 per cent since the peak of the energy crisis from an all-time high above €340/MwH last summer as Europe refilled its stores and reduced its reliance on gas from Russia. But the prices have been jolted by forecasts of hotter weather and supply outages extended at key fields in Norway, and traders are beginning to fret over the EU’s gas supplies despite its storage being unusually high for this time of year.
Diversified Energy Company plc (LON:DEC), formerly Diversified Gas & Oil plc, is a gas and oil production company operating in the Appalachian Basin in the United States.
