Energy: European gas prices rise above 90 euros for the first time since 2022

Brussels. The price of European natural gas continued its run higher since the start of the month on Tuesday, rising to its highest level in almost four years. The landmark natural gas futures contract TTF for delivery in one month rose above 90 euros per megawatt hour (MWh) to 90.15 euros on the Amsterdam stock exchange on Tuesday for the first time since the end of 2022. That's over two percent more than the day before. Recently, the price of gas has reached multi-year highs on several occasions.

Since the beginning of the month, the price of gas has been trending upwards. During this time, the raw material has become a quarter more expensive. The price of European natural gas has roughly tripled since the beginning of the year. The last time it rose sharply was at the beginning of the Ukraine war, although prices at that time jumped much higher to over 300 euros per MWh.

However, the recent increase in the price of natural gas is increasing pressure on consumers and industry. The main price drivers are attacks on merchant ships in the Strait of Hormuz and the increased filling of gas storage facilities before winter. The Iranian Revolutionary Guard recently reported explosions on two oil tankers in the strait, which is important for the delivery of energy raw materials.

A collision with sea mines that had been laid in the south of the strait set the tankers on fire last night. The Revolutionary Guards again described the passage of the strait as illegal and warned against passage.

In addition, Germany, Europe's largest economy, is trying to increase its gas reserves before winter. Last month, state-owned company SEFE Securing Energy for Europe was ordered to procure additional gas for storage. This has provided additional support for prices. The German gas storage facilities are a good 61 percent full - for comparison: a year ago the storage level was still at around 75 percent.