European gas prices are soaring again. Full tanks should avert a new energy crisis | CNN Business

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Europe’s natural gas prices have shot up by more than half so far in June following months of declines, in a troubling reminder of last year’s energy crisis

Benchmark gas futures prices have risen 52% since the start of this month to hit €35 per megawatt hour, according to data from the Independent Commodity Intelligence Service . Prices reversed course mainly because of longer-than-expected maintenance outages at key gas plants in Norway, analysts told CNN. “The recent price rally shows just how sensitive the European market is to disruption,” said Bill Weatherburn, a commodities economist at Capital Economics.

Once a major supplier of natural gas for Europe, the Netherlands has been winding down production at the onshore field over the past decade because of the risk of earthquakes. The field is one of the biggest in the world but now accounts for just a fraction of Europe’s gas supply. Still, reports that it might close in October appear to have rattled traders.

 

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