Prices hit record highs across the board as supply concerns continue

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LONDON – Dutch and UK wholesale gas prices hit record highs in several contracts on Tuesday afternoon amid larger increases in energy market prices, persistent supply issues, more weather forecasts cold and a reduction in French nuclear production due to a strike.

* The November gas price at Dutch hub TTF, a European benchmark, traded at a record 120.80 euros / euros per megawatt, climbing more than 26% from Monday’s close.

* The UK day-ahead contract was 277.00 pence per therm, a 32% increase from Monday and a record high, surpassing the peak of 275 p / therm in March 2018 when a weather system, dubbed the beast of the east, has plunged temperatures.

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* “All energy prices – coal, oil, gas, electricity – are on the rise. There doesn’t seem to be any slackening in the rally, ”said a gas trader.

* Another trader said he saw no particular fundamental reason for the afternoon’s gains other than a general panic in the market because he was running short.

* The market has also ignored news that Nord Stream 2 has started filling one of its two pipelines with natural gas for testing, according to the operator on Monday.

* The German energy regulator has also asked Swiss company Nord Stream 2 AG to provide assurance that the Nord Stream 2 gas pipeline meets regulatory requirements when commissioned, adding that it cannot be ruled out that operations can begin soon.

* Brent crude oil futures hit a three-year high on Tuesday after the OPEC + producer group stuck to its expected production increase rather than pumping even more crude.

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* Physical gas flows to Europe from Russia via the Mallnow pipeline are 130 GWh / day, significantly lower than in September, Refinitiv analysts said in a daily research note.

* In France, five nuclear reactors are operating at limited capacity due to a strike, reducing available production by 2.7 gigawatts.

* In the UK electricity market, the day-ahead price increased 44% to 260 pounds per MWh.

* About half of the UK’s 8 GW nuclear generation capacity is offline for outages, both planned and unplanned, with some restart dates recently extended.

* The EU benchmark carbon contract of December 21 increased from 1.48 euros to 64.88 euros per tonne.

* UK benchmark December 21 carbon contract rose 0.40 pounds to 69.40 pounds per tonne. (Reporting by Nina Chestney and Susanna Twidale; editing by Uttaresh.V)

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