Natural gas prices in Europe rose to €44.32 ($47.06) on Tuesday, hitting this year’s highest rate due to a decline in gas storage and falling temperatures.
The gas price per megawatt-hour for December futures contract on the TTF, the Netherlands-based virtual natural gas trading venue with the most depth in Europe, closed on Monday at €43.73.
Natural gas prices surged to €44.32 per megawatt-hour at the opening session of Nov. 12.
Current prices are at their highest level in 2024 so far, as concerns over decreased gas storage at %93.4, according to official data.
The increase in prices was driven by rising natural gas demand due to falling temperatures in winter and insufficient electricity generation from renewable energy sources.
Additionally, the market is worried about supply-side issues, as it remains uncertain whether Russian gas will reach Europe and what Donald Trump’s potential return to the White House could mean for the Russia-Ukraine War.
'Initial market reactions have been muted to Trump's election victory, but in the medium term, he is expected to reinforce the US' role as a leading oil and LNG exporter. For now, reactionary weather preparedness measures are driving market movement through year's end, leaving 2025 still up in the air,' said Kaushal Ramesh, a senior analyst at energy consultancy Rystad.
By Basak Erkalan
Anadolu Agency
energy@aa.com.tr