London, 26 October. European gas prices rose 2% on Monday and topped 1,100 dollars per thousand cubic metres for the first time since 21 December 2022: November futures at the Dutch TTF hub stood at 1,108.7 dollars by 8:50 Moscow time, according to ICE exchange data in London.
Trading opened at 1,101.5 dollars, and by 10:44 Moscow time November contracts were trading at 1,121.44 dollars. The previous day's settlement price was 1,087.3 dollars. TTF, in the Netherlands, is Europe's largest gas trading hub, and its prices serve as the benchmark for most European contracts.
Prices are rising because of low stocks in Europe's underground storage and disruption to liquefied gas supplies from the Middle East. On 16 October Gazprom head Alexei Miller said EU storage levels were at a record low for mid-October. Kremlin spokesman Dmitry Peskov said Moscow is ready to discuss gas supplies to Europe if European countries are interested and Russia has free volumes.
What it means: Europe enters the heating season with its most expensive gas in almost four years, and the rise is accelerating: in September the average price was about 897 dollars.
Who benefits: Gas and LNG exporters selling at exchange prices. European consumers and industry lose.
Background: In September prices topped 1,000 dollars for the first time since December 2022; the average exchange price for the month was 897.1 dollars, 20% higher than in August. The all-time high of 3,892 dollars was recorded in spring 2022.
