Bloomberg: U.K. Gas Extends Biggest Rally Since 2011 Amid Ukraine Tensions
U.K. natural gas extended its biggest rally since 2011 as Ukraine tensions escalated, deepening a crisis that may affect flows from Russia to Europe.
Front-month gas in the U.K., a European benchmark, gained as much as 3.2 percent to its highest level since March 27. Russia called for an emergency meeting of the United Nations Security Council after Ukrainian security forces clashed with pro-Russian gunmen in eastern Ukraine. Russia and the U.S. blamed each other for orchestrating the unrest.
Futures advanced after climbing the most since September 2011 last week, when Russian President Vladimir Putin threatened to halt gas shipments to Ukraine over unpaid debt. Price disputes between Russia and Ukraine, which carries about 15 percent of western Europe’s needs for the fuel, disrupted flows to Europe in 2006 and 2009 amid freezing weather.