• 08/02/2025 01:50

Gas prices in Europe rose to a maximum in 2024. The reason is news from the Kursk region of the Russian Federation

The price of September futures on the TTF hub in the Netherlands immediately rose by 5.68% to 38.76 euros per cubic meter, or $444.58 at the current rate on the forex market, according to data from the ICE Futures exchange. The exchange price of gas in Europe jumped to a maximum this year – quotes were last above this level in December 2023.

Gas prices in Europe have risen to a maximum in 2024. The reason is news from the Kursk region of the Russian Federation

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News from the Kursk region

The rise in gas prices is taking place against the backdrop of news from the Kursk region in Russia. Market participants fear that this may affect Russian gas supplies via the Sudzha gas metering station located in the region. The transit line through Ukraine via the Sudzha GIS in the Kursk region remains the only route for Russian gas supplies to Western and Central European countries.

Trading Economics notes that since July 26, natural gas prices in Europe have risen by about 20% due to rising tensions in the Middle East. For this reason, traders are also concerned about possible supply disruptions. At the same time, pressure on prices is being exerted by forecasts of hot weather next week, which will increase demand in the power sector.

However, there is now enough gas in European storage facilities – as of August 5, they were 86.26% full, approximately at the same level as a year ago.

Remember

The biggest jump in gas prices this year was in early June, when the price of July gas futures on the TTF hub in the Netherlands reached €38.6 per MWh, or $439 per thousand cubic meters. This happened after a sharp drop in supplies from Norway due to the shutdown of the Nyhamna gas plant. Bloomberg wrote at the time that such a jump in price indicates the important role Norway now plays in gas supplies to Europe; and that the European gas exchange market remains volatile, despite storage facilities being more than 70% full.

The operator of the Ukrainian gas transmission system reported in a daily update that flows on Thursday will be within normal limits. The so-called nominations are an indicator of supply, and actual supplies may change. Earlier in its daily update, Gazprom said flows were at normal levels on Wednesday.

“The gas flow is stable, no changes. If Ukraine wanted to stop the flow, it could do so without seizing Sudzha,” said Sergey Makogon, former CEO of Gas TSO Ukraine, which operates the network.

On August 7, after reports emerged that the Ukrainian military had allegedly taken control of the Sudzha gas metering station in the Kursk region of Russia, the Ukrainian Gas TSO said that the transit of Russian gas through the Ukrainian gas transmission system was proceeding as normal.

    Energy

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