Attacks on Russian refineries trigger increase in oil, gas prices

European natural gas prices extended gains for a fourth day, the longest streak since the end of January, as traders focus on the fragility of global energy supplies.

Benchmark futures jumped as much as 6.2% on Monday, extending last week’s gains. Prices have started to rally recently after plunging as much as 30% since the start of the year, indicating that traders are paying more attention to factors that will affect fuel purchases ahead of next winter, Bloomberg reports.

Outages at global gas liquefaction facilities — from Malaysia to the US — are sending jitters through the market as Europe approaches the last weeks of its heating season. Colder-than-normal temperatures are expected across parts of northern Europe next week before heading higher.

Meanwhile, flows to the Freeport LNG export plant in Texas remain reduced as the operator has said some works will last through April.

Gas gains are tracking advances in oil contracts following Ukrainian attacks on Russian refineries, which raise “the geopolitical temperature,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S.

“Freeport and Ukraine attacks on Russian energy infrastructure are probably the main drivers,” he said. With carbon prices also up as much as 3.4%, there are “no bearish drivers today.”

Dutch front-month futures, Europe’s gas benchmark, advanced 5.7% to €28.57 a megawatt-hour at 9:28 a.m. in Amsterdam.