Gas prices in Europe are rising rapidly again

Exchange prices for natural gas in Europe at the beginning of trading on Friday rose by about 4%, quotes fluctuated around $780 per thousand cubic meters. Such data is provided by the London Stock Exchange ICE. February futures on the TTF index opened trading at $773 for the benchmark volume (+3,7%). As of 10 am Moscow time, gas futures are trading at $779 (+4,4%). OilPrice writes about this.

On January 5, gas prices in Europe for the first time in almost 16 months - since September 10, 2021 - fell below $700 per thousand cubic meters. Experts noted that the decline in gas prices on the European stock exchange is associated with warming and an increase in wind energy generation.



Such persistently high prices, which were first recorded during the past year, 2022, have not been seen in the entire history of the operation of gas hubs in Europe, that is, since 1996. However, possible unique price records are yet to come, as the warm spring weather in the midst of winter only temporarily extinguished the negative effects of the energy crisis with surprise and surprise. The shortage and high cost, the need for fuel has not disappeared anywhere.

Therefore, traders, taking advantage of the moment when, on the wave of cheaper prices, buyers decided to stock up on inexpensive raw materials, they immediately raised prices. The situation on the stock exchanges trading in liquid raw materials is completely out of control of common sense and economic laws, dictated by rush interest and a thirst for instant profit. That is why the price of gas will continue to rise despite the established mild weather and sluggish demand for fuel. Of course, the price ceiling and other EU measures also do not affect him at all.