Gas futures prices in Europe below $1,900

The cost of gas futures in Europe, after renewing the historical high and reaching $2,279 per 1,000 cubic meters the day before, has stood below $1,900, Report informs referring to the London Stock Exchange ICE.

The cost of April futures on the index of the most liquid European hub TTF at the opening of the trading session slightly exceeded $1,800. After dropping to $1,675 in the first minutes of trading, prices moved up and approached the $1,900 mark, but never broke it. So far, the price maximum is $1,888, which, taking into account changes in currency quotes (data on the ICE Futures site are presented in euros), is 2.3% higher than the estimated price the day before - $1,845.8.

Gas prices in Europe have shown strong volatility in recent days. They grew after Russian President Vladimir Putin on February 21 signed decrees recognizing the sovereignty of the "DNR" and "LNR", and on February 24 Russia launched a special military operation to "demilitarize" Ukraine.

A noticeable increase in gas prices in Europe began last spring, when the average spot price on the TTF hub index fluctuated in the range of $250-300 per 1,000 cubic meters. At the end of the summer, the value of a day-ahead delivery contract exceeded $600, and in early October it was already $1,000. The all-time high of $2,279 was reached on March 3.

Experts attributed this price increase to several factors: high demand for liquefied natural gas (LNG) in Asia, limited supply from major suppliers, and low levels of occupancy of European underground storage after a long cold winter and hot summer in 2021. Such persistently high prices have not been seen in the history of gas hubs in Europe since 1996.