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Geopolitical risks intensify and demand rises, European natural gas prices reach their highest level this year
Jinshi data, November 21st news, due to the continuous increase in geopolitical risks and the push for rising demand, the price of natural gas in Europe has reached the highest level so far this year. As the Benchmark, the price of the Dutch TTF natural gas contract rose by 1.9% to 47.69 euros per megawatt-hour, with a cumulative increase of over 19% since the beginning of this month. Market concerns stem from Russia's increased attacks on Ukraine's energy infrastructure and people's concerns that the escalating tensions in the region may disrupt natural gas supplies. After Gazprom stopped supplying natural gas to OMV, investors are also closely following the flow of natural gas through pipelines from Russia to Europe. At the same time, the EU's current natural gas storage is at 89.9%, lower than the five-year average of 91% at this time of year. Analysts at the Netherlands International Group said, "Given that natural gas storage is not as high as initially expected entering the winter, and there are many supply risks, speculators continue to favor long natural gas."