Gas prices in Europe have surged to a record high over the past two years.

Natural gas prices in Europe have surged to a two-year high.

This is reported by Bloomberg.

Futures at the TTF hub in the Netherlands rose by 4% to €58 per megawatt-hour (approximately $635 per 1000 cubic meters). This is the highest level since February 2023.

The agency notes that after a prolonged battle with rising costs, high inflation, and a decline in industrial activity due to the 2022 crisis, the continent is once again facing the threat of another drawn-out rally that could trigger even greater economic problems.

According to Bloomberg, gas supplies in the region are rapidly depleting this winter, and major energy companies such as Uniper and Eni lack the economic incentive to store fuel at current prices. As a result, concerns are growing about fuel reserves this summer and supplies for the next winter.

Politicians are worried that Europe is increasingly relying on intermittent energy sources like wind. However, an increased number of windless days this winter, combined with slightly colder weather, has forced countries to utilize their fuel reserves.

Currently, Europe's storage facilities are less than half full – the lowest level for this time of year since 2022, the agency points out.

Gas consumption in Europe is expected to increase by 17% this month compared to last year, driven by demand from households and commercial enterprises. As Bloomberg reports, winter is not yet over: Northwestern Europe is preparing for frosts in the coming days, which could further boost heating demand, depleting reserves even more and propelling painful price increases.

"The risk that the European Union will enter spring with very low gas reserves has increased in recent weeks," said Arne Loman Rasmussen, chief analyst at Global Risk Management.

Background. Earlier, Mind reported that European natural gas prices have been rising for the fourth consecutive day. The reason is ongoing concerns about supplies.