European market gas price hits six-week high

The wholesale price of gas for the European market climbed to a six-week high today, close to 38 euros (roughly CZK 945) per megawatt-hour (MWh). The rise is driven by lower gas supplies from Norway, demand for liquefied natural gas (LNG), uncertainty surrounding talks to end the military conflict between Russia and Ukraine, and tensions in the Middle East, Reuters reported.

Around 14:00 CEST, the price of the key front-month gas futures contract at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands was up more than two percent, trading close to 37.8 euros per MWh.

According to one analyst, maintenance work on gas facilities in Norway is pushing prices higher this week. On Wednesday, Norwegian gas supplies to Europe amounted to around 160 million cubic metres, only half the usual volume, Reuters reported.

Other analysts also point to demand in Asia, which is competing with Europe for LNG supplies, and a lack of progress in peace talks between Russia and Ukraine. According to Karsten Sander Nielsen, an analyst at Mind Energy, reports of possible Israeli plans to attack Iranian military facilities are also affecting gas prices.