Over the last year, gas #futures have gone from 27,947 euros per kWh of August 2021 to a peak at the start of last week of 339,196 euros per kWh, followed by a slump to 272,603 euros per kWh which took place last Tuesday (source: Amsterdam Ice Endex Dutch TTF Gas Futures stock exchange).
Natasha Linhard, Atlante CEO, comments: “It is interesting to note how the gas dropped by 21% in just one day on Monday. We remain confident that this decrease can continue”.
August has been the most expensive month on record for European power prices, analysts at Rystad Energy wrote in a research note.
“European policymakers are now considering market intervention to curb the skyrocketing prices and protect European private consumers and businesses,” Rystad analysts Fabian Rønningen and James Ryan Kronk said. “European electricity prices accelerated further over the last week, and it’s now clear that August will be the most expensive month ever for electricity in all major European markets.
“The fresh record for July was crushed in Italy, France, Germany and the UK, with Italy being the first market ever to record a monthly average spot price above €500/MWh, as the average for August was €547.”
Power market futures prices on the continent have been “incredibly volatile,” pulling back sharply from recent peaks this week, according to Rønningen and Kronk.
“Once again, the downward movement is caused by a similar movement in the gas market,” the analysts said. “Very healthy storage levels across Europe, as well as fears of market intervention by the European Commission, have contributed to the large downward movement.”
Part of this article appeared on Natural Gas Intel
