Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets, just as green energy drives ramp up in new regions.
Benchmark Dutch natural gas prices in northwest Europe have surged 80% in the past three months to all-time highs, while spot liquefied natural gas (LNG) in Asia is at an eight-year seasonal high, Reuters data showed.
Traders are betting that average winter prices will surpass last year's peaks, when a deep freeze across north Asia sent LNG soaring more than 200% to record highs.
"Storage levels are quite low in many places as a hot summer has meant that there has not been much chance to replenish stocks, so this could be bullish for winter, especially if it's going to be freezing again," a Singapore-based trader said.
The average price for a December LNG derivatives contract in Northeast Asia is about $17.65 per mmBtu, and around $17.80 per mmBtu for January, a Singapore-based industry source said.
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