The price of gas shot up by almost 16% last week. Never before this year has gas been so expensive. Concerns about the gas supply from Russia to Europe are to blame for this. Concerns about the continuity of the gas supply are flaring up due to an attack by Ukraine on Russian territory.
The upward trend that has been going on for a while is now continuing stronger. From last Monday (August 5), when gas was still €35,498 per MWh, the gas price rose sharply to €41,120 per MWh yesterday (August 12). That is an increase of 15,84%. This brings the gas price to the highest point since December 1, 2023, while the demand for gas is low this time of year.
According to analysts, the price increase is mainly due to concerns about the continuity of the gas supply from Russia to Europe as a result of the situation in Ukraine and Russia. The likelihood of military actions increases. Ukraine has attacked Russia in recent days. The supply of Russian gas to Europe may be at risk because there is fighting at the site of the gas pipe.
The price of LNG rose relatively slightly compared to last week. Just before the weekend, LNG was trading at $12,55 per Mmbtu. That is an increase of just under 0,24% on a weekly basis. The price of LNG stood at $19 per Mmbtu on February 8,13 this year, rising sharply to $12,64 mmbtu on June 24. The current price is still a bit below that.
Electricity price
Last week we saw that the price of electricity reached less extreme drops compared to the past two weeks. This resulted in a higher average price. Prices have also fallen less in recent days. Yesterday, on Sunday, the price was €57,11 per MWh.
In recent days, most electricity came from renewable sources, most of which came from solar energy. The summer weather obviously helps with this. In addition, a relatively large amount of electricity came from wind energy.