At least that’s what traders were saying this week in Amsterdam at the Flame conference, the region’s biggest annual gas gathering. Rising prices for energy commodities led by oil and the need to refill depleted storage sites after the coldest winter since 2012 will see European gas consolidate its rare rally during the summer, when lower heating demand usually damps prices.
The increase is reversing trends seen just a few years ago, when a looming oversupply of the fuel, warmer winters and sluggish demand in power generation made it look like gas was only going to get cheaper and cheaper. While the role of crude in pricing European gas has diminished, it continues to be a key driver, according to RWE AG.
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