The price of natural gas in Europe continues its steady upward trend, surpassing 230 euros today, as extremely high temperatures in the region intensify demand for electricity while Russia keeps flows to a minimum.
In particular, the natural gas contract for September delivery arrived today in Amsterdam (TTF) up to 234.5 euros the megawatt hour, although in the course of the day there were some trends of de-escalation of the pressures with the price now at 227.1 euros with a rise of almost 3.2%.
High temperatures and prolonged drought have caused Europe’s river water levels to drop rapidly, making it difficult to transport energy products.
Which will likely prompt utilities to resort to increased use of natural gas at a time when supplies from Russia continue to be sharply reduced.
“The relentless rise in European natural gas continues,” analysts at Deutsche Bank Research said in a note.
“Prices are being boosted by the latest European heat wave, which is causing rivers to dry up and causing fuel transport problems, further exacerbating the continent’s current woes on the energy front,” they point out.
Water levels at a critical point on the Rhine – western Europe’s most important river for transporting fuel and other industrial goods – hit a new low this week, making the crossing unprofitable for many barges.
Oil is also down today
At the same time, oil prices are moving with new losses today, after the strong drop of 3% that they registered yesterday in the wake of the unexpected slowdown shown by the economic activity in the second largest economy of the planet, China.
In particular, his October contract Brent moves to $94.17 the falling barrel 1% or $0.93.
Similarly, the American WTI September recedes by 0.68% with its price set at 88.8 dollars a barrel, down $0.65 today.
The market now awaits U.S. inventory data due later in the day, which is expected to show likely declines in oil and gasoline last week, while distillate inventories are expected to have risen.
Source: Capital
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