Natural gas prices in Europe continued their record-breaking run as uncertainties about supply security this winter worsen. Power prices also surged to a new high amid a disruption on a power link with France. The exchange price of gas in Europe has updated the historical maximum. On Monday, gas futures on the European market hit $950 per 1 thousand cubic meters breaking another record.
This is evidenced by the data of the London ICE exchange.
Over Wednesday, the cost jumped by 17.27% at once.
It is worth noting that the rise in the price of the natural gas will also affect its cost in Ukraine.
The reason for the rise in prices is the low level of gas supplies to Europe due to Gazprom's reluctance to increase sales in the spot market on the eve of the launch of Nord Stream 2. The Kremlin said a quick start of the Nord Stream 2 link from Russia to Germany would ease the European gas crisis.
In anticipation of the start of the heating season, European underground gas storage facilities are less than 70% full compared to the traditional 95% of recent years.
For gas markets, the focus has shifted to Russian supply. Traders are not convinced of extra deliveries from the biggest supplier even after flows via a key link to Germany have recovered, and are now eying upcoming auctions for additional transport capacity to Europe in October.