Europe has reached a two-year high in gas prices
Economy
The exchange price of gas in Europe has jumped sharply, exceeding $620 per thousand cubic meters for the first time since 2023. The main reason is the cessation of Russian gas transit through Ukraine, which has increased instability in the EU energy market.
Exchange trading on February 10 showed sharp price increases: March futures for the TTF index (Europe's largest gas hub) started at $618 per thousand cubic meters in the morning and reached $620.7 an hour later.
The main growth factor was the cessation of Russian gas supplies through Ukraine. After Kyiv refused to extend the transit agreement, Gazprom stopped pumping from January 1. Previously, this route provided up to 4.5% of EU needs. Now, the only source of Russian pipeline gas for Europe remains the "Balkan Current," which passes through Turkey.
In 2024, the average price of gas on the exchange was $386.5, which is lower than the 2023 level. However, the new wave of price increases is reminiscent of the 2021-2022 crisis, when fuel prices reached a record $3,892 per thousand cubic meters.
The situation remains unstable: uncertainty with supplies is growing, and stocks in EU underground storage facilities have already dropped below 50%. Experts warn that in the coming months, the European gas market may face new shocks.
The main growth factor was the cessation of Russian gas supplies through Ukraine. After Kyiv refused to extend the transit agreement, Gazprom stopped pumping from January 1. Previously, this route provided up to 4.5% of EU needs. Now, the only source of Russian pipeline gas for Europe remains the "Balkan Current," which passes through Turkey.
In 2024, the average price of gas on the exchange was $386.5, which is lower than the 2023 level. However, the new wave of price increases is reminiscent of the 2021-2022 crisis, when fuel prices reached a record $3,892 per thousand cubic meters.
The situation remains unstable: uncertainty with supplies is growing, and stocks in EU underground storage facilities have already dropped below 50%. Experts warn that in the coming months, the European gas market may face new shocks.
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