Natural gas prices in Europe continue to rise on the 16th. The energy crisis is exacerbated by hot weather that creates higher than normal demand. As a result, there are fears that the economies of major European countries will fall into recession.
European benchmark gas futures prices rose 6.5% at one point on the 16th, following a 6.8% rise on the previous day. The hot, dry climate is causing river levels to drop rapidly, hampering the transportation of energy commodities. That is likely to force utilities to turn more to gas as an alternative, even as Russia continues to curtail supplies.
“European natural gas price hikes appear to be an inevitable move and continue to do so,” analysts at Deutsche Bank Research wrote in a note. “The recent heat wave in Europe has pushed gas prices up.
European benchmark gas futures were up 2.5% at €225.50 per MWh at 9:25 am Amsterdam time (4:25 pm GMT) on Wednesday. The price is regarding 12 times higher than the average for the same period over the past five years.
With no signs of a slowdown in gas price increases, the benchmark electricity price in Europe hit a record high. Germany’s one-year electricity futures prices rose 5.2% to 502 euros per megawatt hour in early morning trading on the European Energy Exchange (EEX), up regarding 500% over the past year.
Original title:European Gas Jumps Amid Rising Demand and Moscow’s Supply Grip、German Power Hits Record 500 Euros With No Signs of Slowing Down(excerpt)
