Gas prices in Europe reached their highest levels in more than four years during Wednesday's trading, surpassing the $110 per megawatt-hour mark, amid concerns about securing the continent's gas needs as winter approaches, declining storage levels, and expectations of rising heating demand.
For his part, the Washington-based website 'Specialized Energy Platform' reported that European gas prices rose according to the Dutch TTF index, the main benchmark for gas prices on the continent, with November futures rising by 3.2 percent to reach 99.135 euros, equivalent to $110.29 per megawatt-hour.
It noted that December futures rose by 3.235 percent to 99.925 euros per megawatt-hour, while January contracts rose by 3.165 percent to 98.62 euros, according to the site's data. These increases add pressure to energy markets, as rising gas import costs could reflect on energy bills and industrial activities, depending on local market conditions and contracting terms.
In the same context, Europe enters the winter season with storage levels below average, with EU gas storage facilities reaching about 74.6 percent full, with filling operations stabilizing near this level for about two weeks. These levels increase market sensitivity to weather changes, especially with forecasts of dropping temperatures in parts of the continent in the coming days, which could raise gas consumption for heating and increase withdrawals from storage.
Sources added that European gas markets face additional pressure due to ongoing disruptions in liquefied natural gas flows from the Gulf region, which accounts for about one-fifth of global supplies, intensifying competition between European and Asian buyers for available shipments and making it difficult for European countries to secure the quantities needed to replenish their reserves before winter.
Source: Syrian Arab News Agency (SANA)
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