Gas Prices Surge as Supply Uncertainty and Demand Question Marks Arise

On Thursday morning, the price of gas with a contract for delivery in July at the virtual trading hub Title Transfer Facility (TTF) in Rotterdam added more than ten percent compared to the previous day, and at one point climbed up to 44.5 euros per MWh, later by a few euros she fell

At the same time, on Monday the price was “only” 31 euros (737 CZK) per MWh, and at the beginning of June it was even below the 25-euro threshold.

Traders are speculating on the price amid supply uncertainty as ongoing maintenance work at some of Norway’s major gas production and processing facilities extends into mid-July. On the other hand, a question mark hangs over the demand itself.

Europe has come out of the worst this year as it now has sufficient gas reserves after last year’s energy crisis, which gives it a sense of security knowing that it will have enough of the commodity for next winter, according to Bloomberg.

According to current that according to the organization Gas Infrastructure Europe (GIE), storage tanks in the European Union are almost 73 percent full.

Until recently, the wholesale price of gas has been steadily falling since the beginning of the year. At the beginning of January, the price was 82 euros (1950 CZK) per MWh, half a year later, i.e. at the beginning of June, it fell below 25 euros (595 CZK). It was only in the last two weeks that uncertainty about the outlook for demand caused volatility in the markets.