Simmering tensions over Ukraine and an unusually high amount of gas in storage are contributing to a high volatility and soaring volumes in the European natural gas market, say analysts and market participants.

Across Europe, a traditionally slow period for natural gas traders has been punctured by unsteady markets as participants look to adjust their hedges. The recent volatility has also caught the eye of financial traders such as hedge funds, say market-makers.

"Generally, when markets are