The price of the TTF gas market exceeds 210 euros/MWh, putting electricity under pressure, and the Brent rises by 2% to 92 dollars per barrel
First impact for Russian President Vladimir Putin’s new spin to heighten warlike tension in Ukraine with his partial call: The price of the commodities that have the most impact on Europeans’ lives is skyrocketing again. The cost of gas is currently 10% more expensive than after yesterday’s closure, above 210 euros/MWh. The effects of this will be reflected in the electricity bill. And also in fuels, as oil is trading higher following the Kremlin announcement.
In the case of gas, the TTF index (which is traded in Amsterdam and serves as a reference to mark the price of this commodity throughout Europe) after Putin’s announcement is around 210 euros/MWh. It was foreseeable that this would happen, as every phase of tension since February has been directly and quickly reflected in the price of natural gas, of which Russia is one of the world’s largest producers and historical suppliers to the EU.
That same week, the gas price started below EUR 190/MWh, a reference not seen since the beginning of August, before the price increase that brought this product above EUR 300/MWh, its all-time high. Subsequently, all European countries demanded gas to increase their reserves for the winter, before a possible Russian total cut, which pushed prices up significantly.
The main consequence of the increase in the gas TTF is that it will cost more to produce electricity. Because a third of the light Spain uses in the past three months comes from combined cycle plants that use gas to generate electricity. Moreover, it expects another hot autumn with a huge increase in natural gas receipts, despite the VAT reduction from 21% to 5% approved by the Council of Ministers yesterday.
Oil is not exempt from this new war situation either. The price of a barrel of Brent is currently up 2% and is around $92. During the month of September, the average price of crude oil was $90, falling to $87 last week due to the forecast of a drastic reduction in consumption at the gates of the recession.
In fact, the average price of fuels has fallen this week, reaching 1.74% in the case of gasoline and a slight 0.83% in diesel, according to data from last week’s European Union Oil Bulletin. Notably, the average price of a liter of diesel stood at 1,905 euros and has fallen again after three consecutive weeks of increases, holding off from the highs of late June, when it reached 2,141 euros per litre.
For its part, the average price of a liter of gasoline accumulates two weeks fall and stands at 1,748 euros. For example, the average price of a liter of diesel in Spain remains above that of petrol for the fifth consecutive week.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
