OIES-paper on price de-linkages between European gas hubs
The cost of price de-linkages between European gas hubs
The growth of trading activity on Europe’s gas hubs and access to anonymised OTC price data provides the OIES Gas Programme with the opportunity to analyse and draw conclusions on issues of direct relevance to policy makers and market participants. With 2014 data available, the objective of this paper is primarily to explore the extent to which conclusions reached in the Author’s previous papers have changed.
As trading volumes and liquidity increase one would expect to see price correlations across market geography improve, and indeed this is the general trend observed in this paper. Of equal interest however are the anomalies to this trend which may be one-off or recurrent in nature. …