Traders have boosted their bets on a rise in European gas prices to the highest level in more than two years, indicating growing concerns about potential disruption to supplies.
Net long positions held by investment funds in futures contracts linked to Europe’s main gas benchmark have soared to 96.4 terawatt hours, worth about €30bn at current prices, according to data from Intercontinental Exchange released on Wednesday. That represents the largest bullish bet since February 2022, days before Russia started its full-scale invasion of Ukraine and made deep cuts to its pipeline gas supplies to Europe, sending prices soaring.
Prices have since fallen dramatically as European economies reduced their gas usage and found alternatives to Russian imports, helping to fill storage facilities close to record levels. But those efforts have left the continent more reliant on the often volatile global market for liquefied natural gas.