Prices for European natural gas futures approached €47 per megawatt-hour, reaching a peak not seen since November 2023. This increase comes as people prepare for colder weather and possible challenges in getting enough gas supplies.
A severe cold wave is expected to bring heavy snow and colder-than-usual temperatures, which could raise the need for more heating and power.
Russia Ukraine Gas Conflict May Disrupt Supplies
The ongoing conflict between Russia and Ukraine adds to these worries, as it might disrupt gas supplies further. Ukraine has decided not to extend its agreement with Russia for gas transit, which will end on December 31, 2024. Russian gas deliveries to Europe through Ukraine remained steady on Wednesday despite these tensions.
However, due to disagreements over their contract, Russia has threatened to reduce gas flows to Austria. Additionally, because gas prices are higher in Europe, Kpler noted that recently, at least five liquefied natural gas shipments intended for Asia have been redirected to Europe instead.
