EU Gas Traders Ignore Ukraine Rejection as Talks Continue
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Europe’s natural gas traders are betting the risk of supply cuts hasn’t increased after Ukraine rejected a Russian price proposal as the European Union says an agreement can be reached in the next few days.
The premium of winter gas to the day-ahead contract in the U.K., Europe’s biggest market, declined 8.2 percent yesterday, according to broker data compiled by Bloomberg. That signals traders aren’t more concerned about supply in the colder six months from October. Ukraine rejected Russia’s offer to sell gas for about 20 percent below the current price, saying the discount could still be canceled in future.