European gas prices climb above 32 euros/MWh to 10-week high

The wholesale price of gas for the European market continued to rise today, climbing to a 10-week high of more than 32 euros (around CZK 777) per megawatt-hour (MWh). It is being driven higher, among other things, by the prospect of increased demand and geopolitical tensions related to developments around Iran, Reuters reported.

The price of the key front-month gas futures contract at the Title Transfer Facility (TTF), a virtual trading hub in the Netherlands, was up by almost five percent shortly before noon, trading at around 31.70 euros per MWh. In the morning, it surpassed 32 euros per MWh, reaching its highest level since 4 November last year.

Large-scale protests against Iran’s theocratic regime have continued for more than two weeks, with hundreds of people estimated to have been killed. The developments are increasing the risk of disruptions to liquefied natural gas (LNG) supplies.

Temperatures in northwestern Europe are also expected to remain at current levels until the weekend before falling. This could further increase demand for heating.

On Sunday, gas storage facilities in the European Union were nearly 54 percent full, according to data from Gas Infrastructure Europe (GIE). In the Czech Republic, they were more than 61 percent full.