Investors’ fears of a new war in the Middle East and Ukrainian advances in the Russian border region of Kursk are driving the price of European natural gas to its highest level this year.
The leading futures contract TTF for delivery in one month rose in Amsterdam by more than 5.7 percent to 38.78 euros per megawatt hour (MWh). The market referred to the attacks by Ukraine on Russian territory. The fighting is apparently taking place near Sudja, an important access point for natural gas.
Gazprom: Deliveries are proceeding normally
This reaches Western Europe via Ukrainian pipelines. As Bloomberg reports, the Gazprom Group currently still expects normal gas deliveries.
Gas prices have been rising since late July, with some prices rising significantly in recent trading days. Another reason for the price increase is investor fears of a new war in the Middle East and the potential impact on gas supplies from the region. There is great concern that the conflict between Iran and Israel will escalate.
Record high after the outbreak of war in Ukraine
After the consequences of the war in Ukraine temporarily drove the gas price to a record high of over 300 euros per MWh in 2022, prices have remained relatively stable between 30 and 40 euros in recent months. There was a peak at the end of February, when the gas price temporarily dropped to around 22 euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
