Joseph Adinolfi of MarketWatch reports that natural gas prices jumped on Monday due to cold weather forecasts in the U.S. and Europe, and the upcoming expiration of a deal allowing Russian LNG through Ukraine. Ukraine’s foreign minister called for a ban on Russian imports, urging a switch to U.S. supplies. Adinolfi writes:
Natural-gas prices soared on Monday, on track for their biggest jump in more than two years, as traders braced for colder temperatures in the U.S. and Europe. […]
Natural-gas prices soared on Monday, leading crude-oil prices higher, according to Mike O’Rourke, chief market strategist at Jones Trading.
Traders blamed a couple of different factors, including expectations for colder temperatures in the U.S. and Europe, as well as the imminent expiration of a deal allowing Russian liquefied natural gas to be transported to Europe through Ukraine.
Germany, France and the U.K. were all expecting temperatures to drop below zero degrees Celsius in the coming days, while the U.S. was bracing for a polar vortex.
Meanwhile, the Kyiv Independent reported that Ukrainian Foreign Minister Andrii Sybiha has demanded that imports of Russian LNG to Europe must be banned, and replaced with supplies originating in the U.S.
Read more here.
