Natural gas prices in Europe rose to €35.9 ($38.89) on Wednesday, due to concerns that rapidly rising geopolitical tensions in the Middle East could affect global gas supply.
The gas price per megawatt-hour for September futures contracts on the TTF, the Netherlands-based virtual natural gas trading venue with the most depth in Europe, closed on Tuesday at €35.
Natural gas prices surged to €35.9 per megawatt-hour at 12.35 p.m. local time (0935 GMT), 2% above yesterday’s closing.
Current prices are at their highest level in nearly 5 weeks as rising tensions between Israel and Iran threaten to disrupt global supply.
The price levels are considered high for the summer period when natural gas demand is relatively low.
In addition, forecast that the heatwave experienced across Europe this week may increase electricity demand, especially from cooling, also aided the upward movement in prices.
Europe has become more vulnerable to developments in global markets as pipeline gas flows from Russia to Europe have almost completely ceased due to the ongoing war between Moscow and Ukraine.
Natural gas storage in Europe is 84.7% full as of July 27.
