European gas prices push above record $1,000 for second consecutive day

European gas prices push above record $1,000 for second consecutive day

The price of natural gas in Europe surged above $1,000 per 1,000 cubic meters for the second day in a row on Wednesday after adjusting to $950 the night before, Intercontinental Exchange (ICE) data shows.

The cost of November futures on the TTF hub in the Netherlands has so far increased to about $1,020 per 1,000 cubic meters, while the cost of October futures stood at about $1,010 per 1,000 cubic meters.

The overall rise in gas prices since the start of Wednesday’s trading session was about 6% by 7:00 GMT.

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European gas prices smash historic high

On Tuesday, gas prices exceeded the $1,000 level for the first time in history. The cost of October futures jumped 11% at one point to nearly $1,040.

Experts at the Fitch rating agency expect the price of gas to continue to grow and break new records if the current shortage of the commodity on the European market is not curbed ahead of the upcoming winter.

Analysts attribute the price hike to the post-pandemic increase in demand for natural gas combined with underfilled gas storage facilities in Europe. Europe’s energy crunch has resulted in higher costs for consumers and threatens to derail the continent’s economic recovery.

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