Gas Prices In Europe Reach Its Highest Since September 2018

Gas prices at the Dutch TTF hub reached $337.9 per thousand cubic meters on Wednesday and are now at September 2018 levels, trading data show.

At the same time, active gas withdrawals from European underground gas storage facilities (UGSFs) continue. According to the latest data, on Monday, the gas storage capacity was 65.75%, while at the beginning of the month it was 74%.

Gas prices in Europe almost tripled in 2020 amid the pandemic. In May they dropped below 40 dollars per 1 thousand cubic meters. However, in the fall the quotes have already returned to pre-crisis levels and continued to grow rapidly.

This price movement was caused by a high demand for gas due to cold weather in Europe and Asia. European quotes are also supported by the fact that significant volumes of LNG were redirected by European suppliers to Asia-Pacific, where demand was additionally stimulated by an active economic recovery.

source: reuters.com

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