The price of one megawatt-hour (MWh) of gas with a contract for September delivery was close to 31 euros (CZK 748) at the Title Transfer Facility (TTF) virtual trading hub in Rotterdam around 8:30 a.m. CET on Thursday, marking a daily drop of around 16 percent.
In the morning after the opening of trading, the price even temporarily fell to 29.5 euros per MWh, which was a drop of more than 20 percent.
However, the prices of contracts for delivery in the winter months are significantly higher, in February it is over 52 euros (1255 CZK) per MWh. TTF is decisive for prices in Europe.
The price of gas on the stock exchange has increased significantly
Gas prices have fluctuated significantly this month, rising as much as 40 percent at one point. They are affected by concerns about the disruption of the flow of supplies of raw materials from Australia, which is an important supplier to the world market.
Australian producers are negotiating with union representatives this week over wages. After talks that stretched into Thursday night, the union representing workers at Woodside Energy’s LNG plant is now considering an offer the company has put forward to them.
Europe is still recovering from the worst of the energy crisis, when gas prices hit record highs last year. The price reacts very sensitively to the risks of supply interruptions, even with sufficient supplies, the region needs a continuous supply of LNG from world markets.
Last August, the wholesale price of gas for the European market climbed to close to 350 euros per MWh due to supply cuts from Russia, while before 2021 it was well below 20 euros per MWh. Since the end of last year, the price has been on a downward trend, which is sometimes accompanied by noticeable fluctuations. The price of gas started to increase even before the war in Ukraine, according to analysts, in response to the energy policy of the European Union.
Gas traders, including Křetínské EPH, have started storing gas in Ukraine
2023-08-24 08:31:48
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