Prices of EUROPE GAS rise to two-year-highs due to cold storage withdrawals
Dutch and British wholesale prices of gas rose on Monday to levels not seen in the past two years, as colder temperatures increased demand and storage withdrawals increased.
According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was up by 2.22 euros, at 58.20 Euros per Megawatt Hour (MWh), at 0902 GMT. This is the highest level seen since February 2023.
The Dutch April contract increased by 2.49 euros to 58.03 Euro/MWh.
The front-month contract in Britain rose 5.34 pence to 141.45p/therm. This is also a new two-year record.
The forecast for colder temperatures in North-West Europe next week and through March has increased the demand for gas, and withdrawals from storage sites of gas continue.
Saku Jussila, LSEG's gas analyst, said: "Next week is now looking like a real cold spell. The daily average temperature in north-west Europe will drop below zero starting Sunday."
Jussila said, "We expect the bullish trends to continue in the colder weather predictions."
ING analysts said that gas stocks were already the lowest they have been for this time since the energy crises of 2022. Inventory levels are down to 49% compared to 67% last year.
Ukraine increased its gas imports last week, from Poland and Slovkia. This follows a series Russian missile attacks that targeted Ukrainian gas facilities in recent months.
The operator of the state-run transmission system for gas has revealed that Ukraine will import natural gas on Monday at the same high volume of 16,3 million cubic meters (mcm), as it did on Sunday.
The benchmark contract on the European carbon markets rose 1.44 euros, to 83.72 euro per metric tonne.
(source: Reuters)
