and stoking a huge rally in natural gas prices

added 14.01.2021 15:12

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Following a rapid warming of the air above the Arctic, known as a sudden stratospheric warming (SSW), the polar vortex has pushed benchmark UK gas prices to around the highest since the start of 2018, at around 64.50 pence per term.

It has driven natural gas prices to record highs, while Dutch gas prices rose by as much as 40% at one point this week.

Natural gas prices in Europe and Asia have rocketed higher this week, thanks to the polar vortex pushing cold fronts into both regions, sending temperatures below freezing and stoking a burst in demand for power generation and heating.

In Asia, freezing weather has driven benchmark prices for super-cooled liquefied natural gas (LNG) have hit record highs, according to S&P Global Platts, a price-discovery company.

Henry Hub natural gas futures, the US benchmark, have cranked around 10% higher since the start of the year, but without any of the volatility of European and Asian prices.

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