Gas prices in Europe are rising by more than five percent, according to data from the ICE exchange. At the opening of trading, futures contracts for December at the Dutch TTF hub (the most liquid European hub) were sold at $821.6 per thousand cubic meters, then fell to nearly $810, but subsequently rose again. The maximum at the start of the trading session was $853.5, and by 8:20 AM the price reached $831.2 – 5.6 percent higher than the previous day.
Yesterday, the gas price fell to $740 for the first time since mid-September, then rose to $890 and maintained at $816.8 by the end of trading. The average price was $787 per thousand cubic meters.
The European gas market has been volatile for several months. As early as the beginning of August, futures contracts were traded at $515 per thousand cubic meters, but by the end of September, the price more than doubled, and on October 6, it surged to a historic high of $1937. After that, a decline followed, but prices remain high.
Experts attribute the price increase to low filling levels of European gas storage, limited supply from suppliers, and high demand for liquefied natural gas in Asia.
The recent drop in quotations is attributed to an order from Russian President Vladimir Putin to Gazprom to start filling storage in Europe.
