Gas futures prices in Europe rise to $864.5 per 1,000 cubic meters

The prices of March futures for gas exceeded $850 per 1,000 cubic meters at the opening of trading on February 17, Report informs referring to London's ICE.

The price slightly exceeded $850 at the opening of the trading session and, in a few minutes, rose to $864.5, which is 5% higher than the settlement price on February 16 - $822.7.

Gas prices in Europe have shown strong volatility since the end of January. After reaching an average level of $995 in the first month of the year, the prices dropped slightly and the first two weeks of February were trading within $850-$990, but on February 14 they jumped sharply above $1,000, further dropping to $920, and falling below $800 on February 15. The price minimum at the auction on February 16 was $760.

A tangible 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 Europe has seen no such persistently high prices in the entire history of its gas hubs - since 1996.

Experts attribute the price hike to several factors that include strong demand for liquefied natural gas (LNG) in Asia, limited offer from major suppliers and low occupancy of European underground storage facilities after a long cold winter and hot summer of 2021.