European gas prices climbed to a record 100 euros as the global energy crunch deepened.
Futures traded in the Netherlands gained 2.3% on Friday after China ordered its state-owned companies to secure supplies for this winter. Flows from top supplier Russia into Germany’s Mallnow compressor station also dropped.
Energy prices are rising form the U.S. to Europe and Asia as the economy recovers from the global pandemic. Europe is struggling to secure enough gas and coal ahead of the winter, with stockpiles of both commodities depleted.
“Gas can go now as high as it needs to knock demand out,” said Andreas Gandolfo, leader of the European power team at BloombergNEF. “Demand is now driving the gas price.”
Dutch gas futures surged to 100 euros a megawatt-hour, before falling 0.8% by 8:07 a.m. in Amsterdam.