After the attack on Israel: Gas prices skyrocketed in Europe

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The price of gas in Europe rose above 40 euros on Monday. In the morning hours, the cost per megawatt hour (MWh) of the trend-setting futures contract TTF, to be delivered within a month, on the Amsterdam stock exchange rose as high as 41.80 euros. This was almost ten percent more than on Friday. The price last rose above the 40 euro level about a week ago.

On the one hand, the market made reference to the natural gas pipeline between Finland and Estonia, which was closed over the weekend due to the drop in pressure. According to the Finnish operator, a leak is considered possible, but investigations have not yet been completed. Although the incident does not yet pose a threat to European gas supplies, it reveals the fragility of the supply network.

fear of forest fire

On the other hand, market participants cited Islamist Hamas’ attack on Israel as the reason for the price increases. The reaction of rapidly rising oil prices on Monday was clearer than that of natural gas prices. The reason for this is the fear that the conflict between Hamas and Israel may escalate.

Despite recent increases, the price of European natural gas remains well below the level reached during Russia’s war against Ukraine. At times last year more than 300 euros per megawatt hour had to be paid. Russia had significantly reduced gas deliveries to Europe, so new ones had to be found. (pbe/SDA)

Source :Blick