Futures prices for natural gas in Europe rise

Gas futures prices in Europe fluctuate within $885-$910 per 1,000 cubic meters at the auction on February 10, having increased by 0.8-3.8% compared to the settlement price of February 9, Report informs referring to the London Stock Exchange ICE.

A noticeable increase in gas prices in Europe began in the spring of 2021, when the average spot price on the TTF hub index fluctuated within $250-$300 per 1,000 cubic meters. At the end of the summer, the value of a day-ahead delivery contract exceeded $600, and in early October it was already $1,000.

The all-time high of $2,190 in the futures market was reached on December 21. Then the prices decreased, but in general, there have not been such persistently high prices in the entire history of the operation of gas hubs in Europe - since 1996.

Experts attribute the rise in prices to several factors: strong demand for liquefied natural gas (LNG) in Asia, limited supply from major suppliers and low levels of occupancy of European underground storage facilities after a long cold winter and hot summer in 2021.