By Alexander Miller, for Eurasia Business News – October 1, 2021
The price of gas in Europe has officially broken the previous historical maximum set in March 2018, reaching $ 1,000 per thousand cubic meter, and the heating season of 2021/22 is just beginning.
The price of gas jumped after the prices in Asia – the November futures on the Asian spot LNG index JKM Platts added $ 60 at once and reached $ 1,042 per thousand cubic meters. In the context of a general shortage of gas supplies (via pipelines and in liquefied form), Europe is forced to compete for LNG with the premium market in Asia.
The price of gas in Europe has recently been inextricably influencing the prices of the Russian Gazprom shares.
The price of the nearest (October) futures on the TTF spot gas index on the ICE Futures exchange on Tuesday morning reached 85.245 euros per MWh, or $ 1,030 per thousand cubic meters, according to the exchange data.
The historical record for the gas price of a day-ahead contract on TTF was recorded on March 1, 2018 – 76 euros per MWh, or $ 969 per thousand cubic meters.
This inflation of gas prices can be partly explained by the simultaneous restart of the world economies after the coronavirus crisis. Another source of this inflation is the more severe regulation against coal and over gas industry, which has reduced the amount of investments in the past recent years. The decrease of investments has generated a decrease of gas production. Lastly, the bans and regulation on coal use for energy have caused a greater demand for gas.
Exchange rate as of 2021-10-01 at 16:00 UTC : 1 EUR = 1.16 US Dollar
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