European gas prices surge to six-month high

Lazy eyes listen


According to data from the London Intercontinental Exchange (ICE), natural gas contracts in Western Europe rose another 5% on Friday, reaching their highest level since early April.

The price of November gas futures at the Title Transfer Facility (TTF) hub in the Netherlands reached an intraday high of €56.01 ($59.1) per megawatt-hour in residential terms, or more than $617 per thousand cubic metres, during morning trade, the highest level in eight months.

The continent’s benchmark futures prices have increased by more than 54% since last week.

Analysts credit the spike in part to the conflict between Israel and Hamas, which has resulted in the closure of an offshore gas facility that supplies Egypt. They have also mentioned possible sabotage of a Baltic Sea pipeline connecting Finland and Estonia, planned worker strikes at important export industries in Australia, and the impending winter in Europe.