Gas prices rose to a new high this week as concerns about the risk of disruptions to Russian supplies intensified following news that the United States was considering banning energy imports from Russia.
German Chancellor Olaf Solz, however, ruled out such a possibility, noting that energy imports from Russia are ‘essential’.
In one of the most chaotic meetings of recent years, futures contracts were found to jump 79% in the morning to then cut their profits. The sharp fluctuations are expected to trigger large margins calls, which could lead to an even bigger increase in contracts, as traders will turn to new contracts in order not to pay cash to fill their positions, according to Bloomberg. .
The Dutch gas contract, the benchmark in Europe, rose to 345 euros per megawatt hour, to close with an 18% rise to 227.20 euros, the highest level in history.
Price fluctuations reached a margin of almost 139 euros per megawatt hour, which is the largest margin in history, according to Bloomberg.
“I have no words,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Margin calls and a market without liquidity and with great uncertainty are driving the market right now,” he added.
The British contract strengthened up to 74% at 800 pence per thermal unit for the first time, before finally closing at 539.53 pence.
Source: Capital
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