European gas prices surge 20% after cooling down to $980 per 1,000 cubic meters

Gas prices in Europe have topped $1,300 per thousand cubic meters on Monday after declining to almost $980 in earlier trading on London’s ICE exchange.

The price of gas futures for November delivery at the TTF hub in the Netherlands went down to $983.50 per thousand cubic meters Monday morning, marking a long-anticipated drop of around 10% compared to the previous trading day.

However, the decline was followed by a spike in prices of more than 20%. Earlier this month, the TTF hit an all-time high as the gas price topped $1,900 per thousand cubic meters.

Seasonal factors exacerbated by the reopening of European economies after Covid-related lockdowns along with Brussels’ unwillingness to approve Russia’s Nord Stream 2 gas pipeline created the perfect storm for energy prices in the region, sending them to all-time highs.

Meanwhile, European underground storage facilities are underfilled ahead of a winter season that is expected to be particularly cold.

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