Gas prices were up on Tuesday due to cold weather. Gas storage facilities built for the winter are used more often due to the low temperatures. Colder weather is also forecast for Europe in the coming weeks. At the main gas exchange in Amsterdam, the price of gas rose by about 3% to 138.50 euros per megawatt hour.
For now, Europe has had a relatively mild winter. Increased heat demand is now affecting gas supplies. The fact that gas prices aren’t going up much faster yet has everything to do with reserves. The gas depots are still 91% full, which is higher than usual this time of year.
Counteract fluctuations
Meanwhile, European Union countries are discussing ways to ease market volatility after energy bills soared to record highs earlier this year. Several countries are calling for a stricter limitation of gas costs. The Netherlands has proposed to cap the price of stored gas, so that fields can be replenished next year. EU energy ministers will discuss the matter next week.
Supply is expected to remain limited, especially for winter 2023-2024. As a result, higher prices will also continue, according to a report by the Oxford Institute for Energy Studies. If a price cap makes it more difficult to balance supply and demand, it can make the situation even worse.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
