European Energy Prices Surge to Records as Supply Crisis Worsen

The liquid natural gas (LNG) carrier Rudolf Samoylovich delivers and bunkers gas at the Port of Rotterdam in Rotterdam, Netherlands, on Tuesday, July 13, 2021. European natural gas futures retreated after hitting a record last week, pressured by weaker carbon emissions markets and as concerns over stretched shipments partially eased. , Bloomberg

Verity Ratcliffe, Bloomberg News

Sep 28, 2021

Share

(Bloomberg) --

European energy markets from natural gas to carbon permits jumped to records early on Tuesday, on signs that the shortage will only get worse just as the winter season starts. 

Dutch front-month natural gas futures surged 11.6%, while carbon futures jumped 2.2%. German electricity for next year also jumped to a new high. Prices have jumped this month as utilities snap up supplies of fossil fuels to keep their power plants going. 

“Europe’s supply-demand balance will remain unusually tight heading into the winter, adding further price pressure to a market already at record highs,” BloombergNEF analysts wrote in a report published on Tuesday. 

 

 

 

 

©2021 Bloomberg L.P.