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Worth noting Market event Wed, Nov 11 1 min read
European natural gas prices climbed back above €85 per megawatt-hour as concern grew over accelerating withdrawals from storage.[1] TTF is a major benchmark for European gas prices; storage provides a buffer by supplying gas when incoming deliveries fall short of demand.
Faster withdrawals leave less gas in reserve and can put pressure on buyers to secure additional supplies; the report links the price rise to that concern.[1] If higher prices persist and feed into purchasing contracts, businesses that use gas face higher fuel and raw-material costs. The profit impact depends on how much they can pass on to customers and whether they have already locked in purchase prices.
Chemical, fertilizer and other heavy gas users face higher purchasing costs. Producers without locked-in gas prices or the ability to raise customer prices are most exposed to margin pressure.[1]
Higher European prices could encourage suppliers to send more liquefied natural gas to Europe. Sellers with flexible cargoes are better placed to benefit, subject to shipping costs, contract pricing and available capacity.[1]