Do we have aligned and reliable gas exchange prices in Europe?

This comment piece follows on from previous publications by the Beatrice Petrovich and assesses whether the main European energy exchanges provide a reliable price reference for traded gas. Exchanges are viewed as performing a vital role in the development of a traded commodity market and provide the important functions of: price discovery, price transparency, supply/pricing flexibility, physical balancing and financial risk management. Based on this, if gas exchange trading activity exists and offers reliable price signals, we can conclude that these vital functions are provided at a satisfactory level and therefore foster the development of a mature traded commodity market. In particular, this applies to some of the nascent hubs at the European trading periphery, where well-functioning exchange trading could be instrumental in helping to develop hub liquidity by offering new products on “easy-to-trade” electronic platforms and, perhaps more importantly, price transparency.

By: Beatrice Petrovich

Related Publications

Latest Tweets from @OxfordEnergy

  • Changes to the ‘Dated Brent’ benchmark: more to come https://t.co/gW10n8rPMi

    March 21st

  • New OIES paper looks at LNG projects vying for FID in 2019-20, reviews 5 areas, costs and competitiveness, and the… https://t.co/pz3UDcUcQU

    March 20th

  • Outlook for Competitive LNG Supply https://t.co/qmG43CklMw

    March 20th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.