Natural gas prices in Europe have climbed to their highest level in two years due to low temperatures and a decline in gas storage levels.
At the Dutch-based virtual natural gas trading hub TTF, the price of gas for March delivery contracts rose by approximately 4 percent today, reaching 58.75 euros per megawatt-hour. Consequently, gas prices in European markets have seen their highest level since February 2023.
The primary reasons for this increase in prices include the cold weather wave driving up consumption, the rapid decline in gas storage levels, and rising trade tensions following the new customs duties planned by the US against the European Union.
Temperatures are expected to drop even further in the coming days, particularly in Northern Europe, leading to an increase in gas demand. This situation is projected to cause gas storage levels in Europe to fall even more rapidly.
According to Gas Infrastructure Europe data, as of February 8, the occupancy rate of gas storage facilities in Europe has fallen to 49 percent. This rate is approximately 8 percent below the average for the same period over the last five years.
News Source: AA
