Gas prices in Europe exceeded $ 3,500 per thousand cubic meters

Central European gas hub in Baumgarten. Archive photo

Futures prices for gas in Europe on Friday for the first time since March exceed $ 3,500 per thousand cubic meters, according to the London exchange ICE.

Auction nearest futures (index largest European hub TTF) opened at the level of 3213,2 dollars per thousand cubic meters (-2,3%). But as of 17.39 GMT prices are already rising by 6.6%, making 3507,7 dollars per thousand cubic meters. Dynamics of reproduced from the settlement prices of the previous day – 3290,2 dollars per thousand cubic meters, which was a record for all time of operation of gas hubs in Europe since 1996.

In early March quotes of gas in Europe because of fears of a ban on imports of Russian energy four days in a row was updated historical highs. The record price in 3892 dollars per thousand cubic meters was achieved on March 7.

The last price hike on the European gas markets due to the uncertainty concerning the gas supply. Previously, the company “Gazprom”, stated that “Nord stream” due to routine maintenance the only working gas compressor unit compressor station Portovaya stop for three days, from 31 August to 2 September. Futures contracts for the supply of gas in September (TTF) after the news jumped on Friday evening, almost 8% higher than the $ 2,700 per thousand cubic meters, and on the eve reached 3300 dollars.

But significant growth in the cost of gas in Europe began in the spring of last year when the average price of the spot index TTF hub was varied in the range of 250-300 dollars per thousand cubic meters. In late summer, the value of the contract delivery “for the day ahead” has exceeded $ 600, and in early October of $ 1,000.

Experts attributed the price increase to several factors: the high demand for liquefied natural gas (LNG) in Asia, limited supply from key suppliers, and the low level of occupancy of the European underground storage after a long cold winter and hot summer.