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A review of the impact of gas liberalisation and the emergence of trading hubs on the market fundamentals, competition and natural gas prices in Europe
This post considers the latest studies on European gas prices, a short history of the market and effective hedging of seasonal weather, demand, and storage.
The increasing dominance of market pricing in long-term natural gas contracts makes understanding price discovery in the financial and physical layers of Europe's natural gas markets more important than ever. Evidence suggests that monthly expiring UK natural gas futures traded on the Intercontinental Exchange display greater price discovery than physical trading at the major hubs in North West Europe, particularly in the longer-term.