Commodities
European Gas Prices Soar Amid Winter Storage Fears
Natural gas prices in Europe have hit a four-month high, sparking concerns about winter storage. In July, gas prices surged by over 42%.
The increase is attributed to backwardation in the forward curve, which discourages traders from storing gas for future delivery. This makes it challenging to build up reserves for the coming winter season.
An LNG carrier moored in Kawasaki, Japan is a stark reminder of the global demand and supply dynamics at play in the natural gas market.