According to journalists, prices are rising after falling by 30% since the beginning of the year, as traders focus on factors that will affect the replenishment of storage facilities ahead of next winter.
Natural gas prices in Europe continue to rise for the fourth day in a row. This is due to the restriction of supplies from the liquefied natural gas plant in Freeport (USA) and drone attacks on energy infrastructure in Russia. This was reported by Bloomberg.
On the TTF trading floor in the Netherlands, natural gas futures rose by 5.2%, reaching 28.5 euros per megawatt-hour (or about $320 per thousand cubic meters). This price increase follows a 30% decline since the beginning of the year, as traders are actively analyzing factors that could affect restocking before the onset of next winter.
The reduction in natural gas supplies to the LNG export plant in Freeport, Texas, was one of the factors contributing to the price increase. Some works at the plant were extended until April, which led to a decrease in supply and increased pressure on the market.
Gas prices also depend on the rise in oil contracts after Ukraine’s attacks on Russian refineries, which raise the “geopolitical temperature,” said Ole Slot Hansen, head of commodities strategy at Saxo Bank A/S.
According to Hansen, the situation in Freeport and Ukraine’s attacks on Russian energy infrastructure are likely to play a key role in the current gas price movements.
As a reminder, a total of 12 oil refineries in Russia have been successfully attacked by SBU UAVs recently. The Slaviansk refinery became another oil plant attacked by Ukrainian drones in a week. At the same time, experts called the situation on the Russian energy market serious, as evidenced by trading on the St. Petersburg Commodity Exchange. The price of gasoline in Russia has reached its highest level in six months, and its growth during the day is almost 2%.
