An unexpected factor from the US pushes gas prices in Europe to skyrocket

European gas prices rose as traders assessed supply risks amid hot weather in parts of Asia and Hurricane Beryl affecting major gas supplier Texas (US).

Gas prices in Europe have risen more than 20% since traders began stockpiling in April. (Source: RT)

Specifically, the price of the European standard gas futures contract increased by 2.1% at one point on July 8.

European gas inventories are well stocked for this time of year but the global market the region depends on has seen some disruptions recently.

Gas prices in the region have risen more than 20% since traders began stockpiling in April.

The risk the market is closely watching is that Hurricane Beryl, which is making landfall on the Texas coast, will disrupt liquefied natural gas (LNG) operations there.

Freeport LNG's liquefaction facility announced a production cut.

In Europe, an unplanned shutdown at the UK’s Tolmount facility continued into the evening of July 8. Hotter-than-normal conditions gripping parts of Asia have also increased demand for gas to generate electricity.

“Europe’s growing reliance on LNG means gas prices will remain highly vulnerable to unplanned supply outages and weather changes in Europe or Asia,” BloombergNEF analysts Iryna Sereda and Alireza Nahvi wrote.

Source: https://baoquocte.vn/mot-yeu-to-bat-ngo-tu-my-day-gia-khi-dot-tai-chau-au-tang-vot-278167.html