Natural gas prices in Europe register 4.4 percent rise in price of standard futures contracts
Date
12/7/2023 4:06:52 AM
(MENAFN) During Wednesday's trading, natural gas prices in Europe experienced an upward trajectory, registering a 4.4 percent increase in the price of standard futures contracts. Bloomberg News Agency reported on the market dynamics, highlighting meteorological forecasts pointing to abnormal temperature drops in the latter half of the month. This comes despite the current return to moderate weather conditions in the near term.
The recent decline in gas prices to their lowest levels in approximately two months has spurred heightened usage in some power plants. Gas is becoming a more economically viable alternative to coal, prompting a shift known as the "conversion level." At this point, electricity companies transition to using gas instead of coal in their generation plants due to the cost-effectiveness of gas, as noted by analysts at the Energy Scan Research Foundation, affiliated with Engie Energy.
Despite the stabilization in the European energy market attributed to near-record natural gas inventory levels and relatively mild weather, the market remains susceptible to potential disruptions in supply. The region's vulnerability underscores the importance of monitoring supply levels closely, given the potential repercussions on market stability.
In the trading landscape, Dutch gas prices saw a notable 3.6 percent increase, reaching 39.50 euros per megawatt-hour for delivery in the coming month. Simultaneously, British gas prices also rose by 3.2 percent, signaling the ongoing impact of market dynamics on energy prices in the region.
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