Brussels, 21 October. The average spot price of gas in the European Union, according to the EU Agency for the Cooperation of Energy Regulators (ACER), stood at €85.4 per megawatt-hour, roughly equivalent to $1,015 per thousand cubic metres: the $1,000 threshold has been crossed not only by futures but also by the market for gas with near-term delivery.
A spot price is the price of gas for immediate or near-immediate delivery — the same or the next day — as opposed to futures, where the price is fixed today for delivery in the future. On Tuesday, 20 October, the day-ahead gas price at the TTF hub reached $1,052 per thousand cubic metres, or €90.75 per MWh, for the first time since December 2022, while the November futures contract traded at around $1,042 (€89.83). TTF is a virtual trading point in the Netherlands whose prices serve as the main benchmark for gas in Europe.
Prices are rising against the background of a global gas shortage caused by the Middle East conflict and relatively low stocks in Europe's underground storage facilities, which are only 74.62% full. Anadolu gives a similar figure — €85.06 per MWh — and links the pressure on the market to continued shipping disruptions through the Strait of Hormuz and low storage levels ahead of winter.
What it means: Expensive gas has spread from exchange contracts for future delivery to the market for immediate delivery: Europe is already paying over $1,000 per thousand cubic metres and is entering the heating season with storage three-quarters full.
Who benefits: The sources do not name winners. High prices concern first of all gas consumers in the EU, who face the heating season with stocks at around 75%.
Background: The market has been getting more expensive for more than a month: in September, according to Eurostat, fuel in the EU was 31.4% more expensive than a year earlier, and gas production in Norway fell by 12.6% in September.
List of sources used: InfoTEK, Anadolu
Artificial intelligence was used in preparing this material.
