The gas prices Europe and the United Kingdom soared to an all-time high on Tuesday, driven by demand under intense winter cold and geopolitical tensions between Russia, a key supplier, and consuming countries.
The Dutch TTF, the benchmark for gas in Europe, reached 162,775 euros (195.33 dollars) per megawatt hour in the morning, an increase of more than 10% since the close of the day before, surpassing the previous record of October 6.
British gas for January delivery also hit a new record at 408.30 pound cents per therm (a unit of measurement of heat).
Those spot price levels are seven times higher than at the beginning of the year.
“European natural gas continues its inexorable rise,” said analysts at Deutsche Bank.
Two factors explain the increase according to Deutsche Bank: “Temperatures that continue to drop in Europe” at the beginning of winter, and “the absence of reserves of Gazprom (the Russian gas giant) to have additional capacity in January for gas that transits Ukraine. “
One third of European gas comes from Russia.
Gas stocks in Europe have declined for a prolonged winter in 2020.
Some analysts consider that Russia contracted its offer to Europe to increase energy prices in the middle of winter and thus pressure the acceleration of the entry into operation of the controversial gas pipeline Nord Stream 2, but Moscow denied that version.
Reference-www.eleconomista.com.mx