European gas markets have entered a markedly different phase, with prices
European gas markets have entered a markedly different phase, with prices surging after months of relative calm. According to reporting from Bloomberg, benchmark futures are on track for their biggest weekly increase in more than two years, as a combination of weather-driven demand, shrinking reserves and shifting investor behavior has upended earlier assumptions about supply comfort.
For much of the heating season, the market had been defined by low volatility and bearish positioning. Storage levels were widely considered adequate, encouraging traders to bet that prices would remain under pressure. That narrative has changed rapidly, according to the business news organization.
A spell of unusually cold weather has lifted heating demand across Europe, exposing the limits of the region’s gas buffers. Inventories have fallen to below 52% of capacity, well under the five-year seasonal average of roughly 67%, intensifying concerns about both current supply tightness and the challenge of rebuilding stocks for next summer.
The sudden change in fundamentals triggered a sharp shift in sentiment. Traders who had positioned for falling prices have been forced to buy futures to close out their bets, accelerating the rally and amplifying price swings. Analysts describe the move as a reminder
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