U.K. Natural Gas Options Trading Signals Ukraine Supply Concerns
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Options traders are bracing for higher European natural gas prices as the worsening conflict between Russia and Ukraine threatens to disrupt supplies of the fuel this winter.
Three of the four most-active natural gas options are calls giving the holder the right to buy U.K. gas futures in January, February and March at levels at least 20 percent above current prices, ICE Futures Europe data showed. The number of outstanding calls, known as open interest, for all months traded is the highest since ICE listed the contracts in 2011.