Prices surge to records across the board as supply worries continue

The November gas price at the Dutch TTF hub, a European benchmark, traded at a record 120.80, euros/euros per MW climbing more than 26% from Monday's close. The British day-ahead contract was at 277.00 pence per therm, a 32% increase from Monday and a record high, surpassing the 275 p/therm high in March 2018 when a weather system, nicknamed the beast from the east, sent temperatures plunging. 

All energy prices - coal, oil, gas, power - are up. There doesn't seem to be any let up to the rallying," a gas trader said. 

Another trader said he didn't see any particular fundamental reasons for the afternoon gains other than a general panic in the market over being left short. 

The market also shrugged off news that Nord Stream 2 has started filling one of its two pipelines with natural gas for tests, according to the operator. Germany's energy regulator has also asked Swiss-based Nord Stream 2 AG to provide assurances that the Nord Stream 2 pipeline meets regulatory requirements when it enters service, adding it cannot be ruled out that operations could start soon. 

Brent crude oil futures hit a three-year high on Tuesday after the OPEC+ group of producers stuck to its planned output increase rather than pumping even more crude.Physical gas flows to Europe from Russia through the Mallnow pipeline are at 130 GWh/day, significantly lower than September, Refinitiv analysts said in a daily research note. 

In France, five nuclear reactors are operating at limited capacity due to a strike, reducing available production by 2.7 GW, and in the British power market, the day-ahead price rose 44% to 260 pounds per MWh. 

Around half of UK's 8 GW nuclear generation capacity is offline for outages, both planned and unplanned, with some restart dates recently extended. The benchmark Dec-21 EU carbon contract was up 1.48 euro at 64.88 euros per tonne. The benchmark Dec-21 British carbon contract was up 0.40 pounds at 69.40 pounds a tonne. 

 (Reporting By Nina Chestney and Susanna Twidale; editing by Uttaresh.V)