Gas prices on the rise in Europe
Gas prices in Europe continue to rise after senior Israeli military officials stated that their country should respond to attacks by Iranian missiles and drones. According to Bloomberg, futures for the TTF hub in the Netherlands rose by 3%, reaching 32 euros per megawatt-hour (around 360 dollars per thousand cubic meters).
These contracts have risen by about 18% since last Thursday, when markets began to assess major geopolitical risks, including potential disruptions due to Russia’s strikes on the Ukrainian energy infrastructure. Officials from Europe and the US have called on Israel to avoid escalation of the conflict, which could lead to a wider war. A broader conflict in the region threatens to increase global energy prices at a time when central banks are trying to curb inflation.
Despite Europe having experienced a mild winter with high gas reserves, traders continue to monitor signs of possible supply disruptions. The region is currently not receiving a significant amount of gas from the Middle East, but its dependence on global markets has increased after losses in 2022, when Europe lost some of the pipeline flows from Russia.
Supplies from the leading supplier, Norway, remain low due to unplanned maintenance at some of the country’s facilities, which began last weekend.
