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Italy’s Natural Gas Premium Widens as Heat Wave Spurs Demand
Italy’s premium for natural gas edged higher, signaling stronger demand for the fuel in the country as a heat wave takes hold of southern Europe. Italian gas for next-day delivery has traded about €3.80 a megawatt-hour higher than an equivalent contract in Spain this week. That’s the widest spread since April. The contract has also surged against day-ahead prices for the European benchmark. Above-normal summer temperatures are leading to higher electricity consumption across Mediterranean Europe, but the impact on short-dated gas is pronounced in Italy, where the grid relies more on natural gas to meet demand ... (full story)