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Natural gas prices in Europe surged again, with Russia signalling further export squeezes and European buyers scrambling for supplies. Gas prices have risen almost 40% in August and nearly 300% this year.
Surging European gas raises inflation and production costs, which squeezes nitrogen fertilizer output and pushes up feed and livestock input costs.
reuters.comTommy Wilkes, Yoruk Bahceli, Dhara RanasingheAug 24, 2022After 136 past bullish geopolitics events, Natural Gas moved a median +2.7% over 5 sessions (63% higher; middle half -1.8% to +8.8%), and +4.0% over 20.
After 205 past bullish geopolitics events, Urea moved a median +0.4% over 5 sessions (53% higher; middle half -2.1% to +3.0%), and -0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
A new surge in European gas prices raised nitrogen production costs and supply fears, supporting urea prices.
