New rise in gas prices in Europe in the uncertainty about the “temporary cap”

Natural gas prices in Europe have started to rise again, amid uncertainties about the European Union’s plans to impose a temporary ceiling on the price of imports.

Dutch benchmark futures jumped 7.8% after three losing sessions. The European Commission indicated Monday that other measures to limit excessive price volatility could be more efficient than setting a cap.

The contract future next month’s gas in the Netherlands, the European benchmark, rose 5.3% to 115.50 euros per megawatt hour by 10:42 am in Amsterdam. The UK equivalent rose 5.1%.

Fears of a worsening situation have eased in recent weeks due to the mild weather, the influx of LNG and high storage levels. However, there is still the risk of further supply disruptions and temperatures are expected to drop as winter approaches, increasing the demand for heating.

According to Bloomberg, EU diplomats say the political debate over setting a price cap threatens to delay a deal on an emergency package to curb high energy prices.

According to Gas Infrastructure Europe, warmer-than-usual weather has slowed heating demand and delayed withdrawals from storage sites, which are 95.3% full.

Forecasts indicate that temperatures above the media in north-western Europe they will continue until the end of the month.

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