Ukraine conflict keeps energy prices elevated as risk of supply disruptions remains high
Gas prices in Europe fell sharply in the course of trading session on Friday. The price of March futures in the European TTF hub in Netherlands plunged by 27% to $1,148 per 1,000 cubic meters on the ICE exchange as fears of Europe’s energy supply outages due to Ukraine conflict receded.
Gas prices in Europe soared to as much as $1,600 per 1,000 cubic meters the day before — for the first time since December 23, 2021. Futures on natural gas at the auction on February 24 rose by more than 60%.
Russian’s biggest gas producer Gazprom cooled market anxiety on Friday announcing that Ukraine’s gas pipeline is operating normally and there are no supply disruptions. The company's press service said that gas supplies to Europe are in line with the requests of European consumers - 103.8 million cubic meters. However, the risk of disruptions in gas supplies to Europe remains high which is likely to keep pressure on European equities as well as Euro in the near-term.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.