Gas prices in Europe rise on first trading day of spring

Gas prices in Europe have seen a notable increase in the first trading session of spring, with exchange prices rising by 4 per cent, approaching $500 per thousand cubic meters.

This uptick follows recent market trends, according to data from the London ICE exchange, Caliber.Az reports.

On March 3, futures for April delivery on the TTF index opened at $504.3 per thousand cubic meters. However, the price later slightly decreased to $497, showing some volatility in the market.

This rise in gas prices comes after a significant surge in mid-February, when European gas prices surpassed $630 per thousand cubic meters for the first time in two years. Despite the recent dip, current prices still reflect elevated levels, signaling ongoing uncertainty in the energy market.

The fluctuations in gas prices are being closely monitored by analysts as Europe continues to navigate the complexities of energy supply and demand, particularly in the wake of geopolitical tensions and the ongoing effects of the energy crisis.

Currently, Europe's underground storage facilities (UGS) are less than 39.5 per cent full, holding around 43.5 billion cubic meters of gas. Since the beginning of the heating season in late October 2024, EU countries have withdrawn nearly 66 billion cubic meters of gas from storage, with net withdrawals exceeding 62 billion cubic meters.

The share of wind energy in the EU's electricity generation was 21 per cent on average in January, but by February, it had dropped to around 13 per cent. This further boosted demand for gas for power generation. However, by the end of the month, there was a sharp reversal in gas prices, driven by milder weather in the region and the start of negotiations between Russia and the US.

By Vafa Guliyeva