Gas prices in Europe spike on news of no extra transit through Ukraine

European gas prices surpassed $900 per 1,000 cubic meters on Monday, following reports about Gazprom’s decision not to book additional capacities for gas transit through Ukrainian territory.

The price of October futures on London’s ICE jumped to $908 per 1,000 cubic meters after falling below $800 on Friday.

The rally follows Russian energy giant Gazprom’s decision not to book additional capacity for the transit of natural gas through Ukraine for October. Ukraine’s gas transportation operator offered transit capacities amounting to 15 million cubic meters per day for October at an auction on Monday. But according to the auction results, they remained unclaimed, TASS reports. In September, Gazprom booked only 4.3% of the proposed capacity.

The gas market rally subsided later in the day, however, with the TTF hub in the Netherlands trading $881 per 1,000 cubic meters as of 11am GMT.

This change could stem from the news that Europe’s key gas supplier, Norwegian Equinor, received long-awaited permission to boost gas exports from its offshore Oseberg and Troll fields.

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