LONDON, July 17 European gas and coal prices
jumped on Thursday after a Malaysian Airlines passenger jet
crashed over eastern Ukraine, as traders feared a sharper
deterioration of relations with major energy producer Russia.
"The whole energy complex just went. There's a general fear
of a massive escalation," said one trader.
Wholesale gas prices in Britain, Europe's largest market,
leapt nearly five percent.
Gas for delivery on Friday and this coming
winter both closed 4.9 percent higher to 38.70 and
59.50 pence per therm respectively.
"The market may be speculating on an escalation of
Ukrainian-Russian tensions," said Paolo Coghe, an energy analyst
with French investment bank Societe Generale.
A Malaysian airliner was shot down over eastern Ukraine by
pro-Russian militants on Thursday, killing all 295 people
aboard, a Ukrainian interior ministry official said.
Raising the stakes in the East-West showdown between Kiev
and Moscow, the official blamed "terrorists" using a
ground-to-air missile, while Ukraine separatist leader
Aleksander Borodai blamed Ukrainian government forces.
Russia is the biggest oil, gas, uranium and coal importer to
the EU, according to the European Commission.
European coal for delivery in the fourth quarter
gained 50 cents to close at 75.25/tonne. Carbon prices
surged to a four-month high of 6.24 euros/tonne after news of
the crash broke.
On electricity markets, German calendar 2015 baseload power
ended up 1.2 percent at a session high of 35.05
(Reporting by Michael Szabo; additional reporting by Nina
Chestney; Editing by William Hardy)