Gas prices in Europe skyrocket again

The price of gas in Europe during trading on the London stock exchange ICE on October 25 again rose above $1,100 per 1,000 cubic meters, according to the trading data, Report informs referring to TASS.

The cost of November futures on the TTF hub in the Netherlands is currently $1,109 per 1,000 cubic meters, or 92 euros per MWh (based on the current EUR/USD exchange rate, prices for ICE are presented in euros per MWh).

At its peak today, the gas price reached $1,139 per 1,000 cubic meters.

The European gas crisis escalated this fall, after gas spot prices began to skyrocket, surpassing $1,000 per 1,000 cubic meters and almost reaching $2,000 per 1,000 cubic meters, amid low storage capacity.

According to observers, the crisis was caused by a complex of factors. One of them is the explosive growth in gas demand in Asia, which caused an increase in prices on the Asian market, as well as an outflow of supplies from the European direction. The situation was aggravated by the fact that the share of wind generation in Europe decreased.

However, the main reason for the high volatility in the gas market was the low occupancy rate of gas storage facilities. As of mid-October, European underground gas storage facilities are 71 percent full of the volume of gas extracted from them last season.