By Tyler Durden
A combination of Russia’s inactive Nord Stream 2 pipeline and cooler weather forecast through the end of December sparked a rally in European natural gas futures. German power prices surged to a record high while French power prices jumped to a decade high.
Concerns that Nord Stream 2 pipeline won’t operate this winter season comes as the new German chancellor Olof Scholz said his government would “do everything” possible to make sure natgas flows continue through Ukraine and not the latest Russian to German undersea pipeline. Last month, German energy regulators suspended Nord Stream 2’s certification process. The US has also sanctioned companies affiliated with the pipeline’s construction.
On top of the geopolitical uncertainties, mixed with tight natgas supplies across Europe, some of the lowest in a decade, a new 14-day weather forecast shows cooler than average weather, which will boost natgas demand…
