- European gas price rises to year-end high
The price of European natural gas has reached its highest level this year. The leading futures contract TTF for delivery next month rose by more than 5.7 percent to 38.78 euros per megawatt hour (MWh) in Amsterdam.
Market participants cited attacks on Russian territory by the Ukraine as a factor. Recent reports suggest fighting has occurred in the Russian region of Kursk, near Sudza, an important gas injection point that supplies gas to Western Europe through Ukrainian pipelines. Gazprom, the Russian energy giant, currently reports no disruption to gas supplies.
Concerns about a new war in the Middle East
The gas price has been rising since late July, with significant gains in recent trading days. Another factor driving prices up is investors' fear of a new war in the Middle East and its potential impact on gas supplies from the region. Tensions between Iran and Israel are escalating, with U.S. Secretary of State Antony Blinken recently warning of a dangerous escalation.
After the Ukraine war drove gas prices 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 brief drop to around 22 euros in late February.
The escalating tensions between Iran and Israel have led to investors' fear of a new war in the Middle East, which could disrupt gas supplies and further drive up the gas price. Despite the concerns, Gazprom, the Russian energy giant, has reported no disruption to gas supplies.
