The growth of natural gas prices in Europe is accelerating sharply

The growth of natural gas prices in Europe is accelerating sharply. The price of a key futures contract with delivery in November rose by up to 40 percent on Wednesday and for the first time exceeded 160 euros per megawatt-hour. This is shown by the data for the Title Transfer Facility business node in the Netherlands, which determines prices on the European market. On Tuesday, the price of the November contract rose by about 20 percent and for the first time exceeded 100 euros. In just two days, the price of gas with delivery the following month increased by about 60 percent. The rise in prices is due to the rise in economic activity, low gas reserves and the approaching heating season. The rapid rise in energy prices, including natural gas, has already begun to be addressed by the European Union. The European energy crisis is also exacerbated by the lack of wind in turbine sites, linked to the ongoing shutdowns of nuclear power plants and the closure of coal mines in the context of climate protection. Britain is also complicated by the fact that it relies on natural gas to generate electricity. Russia's gas group Gazprom said on Tuesday that it plans to prioritize the domestic market over gas exports abroad because it expects the coming winter to be cold and snow. This was stated by Sergei Gustov, head of Gazprom's domestic market division Gazprom-Mezhregiongas.