It is reported that the war between Hamas and Israel has affected the energy markets all over the world. In Europe, the price of natural gas has increased by 44.6% since the conflict began on October 7, and reached 55.3 euros per megawatt hour (MWh) in the TTF Dutch market.
The rising price of natural gas has also caused the electricity price to rise to the highest level since March in recent days, because natural gas is the key to the power mix. After the beginning of the conflict, the average electricity price increased by 6.7% compared with the previous week to 141.05 euros per megawatt hour (MWh), which means an increase of 42.3% compared with the price paid by consumers on the day of the war (99.16 euros/MWh).
In this case, in addition to the geopolitical tension that led to the suspension of production in the Tamal natural gas field along the Israeli coast, a Finnish-Estonian natural gas pipeline broke down and may not be operational until early 2024, which undoubtedly added to the current energy situation. The International Energy Agency issued a warning this week, predicting that the prices of natural gas and electricity will continue to face rising risks in the coming months. “The risk of price fluctuations, especially in the cold winter, is worrying. European gas storage facilities enter the winter heating season with 96% capacity. But this does not guarantee the price stability throughout the season, especially when the weather is extremely cold. “
Post time: Oct-23-2023