Deutsche Bank says gas hedges delay impact of higher wholesale prices on businesses
Bitget2026/11/13 16:13- Elevated wholesale gas prices will feed into businesses’ costs as fixed-price contracts renew and cheaper hedged purchases are replaced.
- Procurement costs across hedging strategies could converge the longer gas prices remain at current levels.
- Spot-market buyers face price increases first but benefit sooner from declines.
- Germany’s purchases of Long-Term-Options (LTOs) could reduce supply risks and extreme price spikes, though stockpiling incentives could lift near-term demand.
- Businesses should regularly assess ways to reduce technical dependence on energy sources vulnerable to price swings.
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