Gas prices for the European market rise above 37 euros per MWh, highest since June

The wholesale price of gas for the European market rose by more than ten percent today, exceeding 37 euros (roughly 900 Kč) per megawatt-hour (MWh). It reached its highest level since last June. The increase was driven by forecasts of colder weather for the rest of the month, raising concerns about gas supplies in Europe, Reuters reported.

At around 15:30 CET, the price of the key front-month gas futures contract at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands was up by around 13 percent, trading above 37.50 euros per MWh.

Arne Lohmann Rasmussen, an analyst at Global Risk Management, said the gas market had been hit by a combination of colder weather forecasts, falling storage levels, geopolitical risks related to developments in Iran, and speculative trading activity.

On Wednesday, gas storage facilities in the European Union were just under 52 percent full, according to data from Gas Infrastructure Europe (GIE). In the Czech Republic, they were nearly 59 percent full.

"With colder weather approaching next week, falling storage levels are becoming an increasing concern. There is a risk that European storage facilities will be less than 30 percent full at the end of winter," Mind Energy said in a statement today.

Prices are also continuing to rise in the European emissions allowance market. The price of the benchmark contract reached close to 93.50 euros per tonne, its highest level since spring 2023. Allowances give their holder, usually a company, the right to emit carbon dioxide. Without a corresponding number of allowances, a company may not legally emit carbon dioxide.