(Bloomberg) --
European natural gas rose for a second day as curbed exports from Russia and tensions over Ukraine create supply worries.
The relief for European consumers from an increase in Russian shipments earlier this week has been short-lived after supplies through Ukraine declined again. Additionally, gas deliveries to Germany via the key Yamal-Europe pipeline remain halted, with the link returning to pumping in the reverse direction instead.
Traders and policymakers also remain on edge on concerns that Russian flows may be disrupted if Moscow's standoff with Ukraine erupts. The Kremlin's spokesman on Thursday accused the U.S. of “fueling tensions” with its decision to deploy more troops to eastern Europe.
Russia Blasts Troop Moves; Macron Engages Putin: Ukraine Update
“The absence of de-escalation signs in the Russia-Ukraine conflict” is supporting gas prices, according to consultant Engie EnergyScan.
Milder weather and strong liquefied natural gas imports, which reached a record last month, have brought some relief to the European market with prices more than halving from December records. But the heating season still has some way to go, and demand signals could change quickly.
After the recent mild spell, the U.K. is going to have a cold interlude with chance of snow and sleet, according to the Met Office. Milder air, though, is expected to return over the weekend.
Benchmark Dutch front-month gas advanced 3.9% to 80.35 euros a megawatt-hour as of 5:40 p.m. in Amsterdam, after briefly dropping earlier. The equivalent U.K. futures rose 5.2% to 193.50 pence a therm.
While it won't be easy to replace the huge volumes of gas that Russia sends to Europe, the U.S. is pitching in by searching the world for surplus fuel that can fill supply gaps in case of a crisis.
Shell Plc also pledged to step in. The company, one of the world's biggest LNG traders, will be able to “help out” from its European projects and divert cargoes if required, Chief Executive Officer Ben van Beurden said Thursday.
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