'Total craziness' as gas prices extend record highs on energy rally, low wind, cold

'Total craziness' as gas prices extend record highs on energy rally, low wind, cold
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Updated 06 October 2021

'Total craziness' as gas prices extend record highs on energy rally, low wind, cold

'Total craziness' as gas prices extend record highs on energy rally, low wind, cold
  • "It's amazing what we are looking at. Total craziness: Trader
  • European gas prices were also supported by ongoing concerns about supply scarcity

Dutch and British wholesale gas prices extended record highs on Wednesday morning, in line with rallying energy markets, and as forecasts of lower wind and cooler weather lift demand and supply remains scarce.


The November gas price at the Dutch TTF hub, a European benchmark, rose by 25.60 euros to 143.10 euros per megawatt hour on wednesday and earlier in the session reached a record 155.00 euros per megawatt hours.

The British day-ahead contract was up 0.61 pounds at 3.40 pounds per therm, also a new record high.


"It's amazing what we are looking at. Total craziness," a gas trader said.


Power markets were taking the lead, with German baseload for Thursday delivery touching 400 euros per megawatt hour earlier on Wednesday, he added.


"A big theme for gas is that we might need withdrawals next week due to colder weather... but of course nothing justifies these moves," the trader said.


"The first half of the next week will be cloudier and cooler with showers. Temperatures will be below normal," Refinitiv meteorologist Georg Mueller said.


UK storage levels were 100% full on Wednesday, according to Gas Infrastructure Europe data.


European gas prices were also supported by ongoing concerns about supply scarcity, analysts at Engie Energyscan said.


Pipeline deliveries from Russia have been lower since the summer while Asian liquefied natural gas (LNG) spot prices climbed to a record high of nearly $40 per million British thermal units (mmBtu) on Tuesday.