European energy prices surged again on Monday as temperatures dropped and flows of natural gas through a key Russian pipeline fell to the lowest level in more than a month.
Derivatives linked to TTF, Europe’s wholesale gas price, rose as high as €148.50 per megawatt hour on Monday, up from a record high closing price of €136/MWh last week. The latest jump threatens to keep pushing up energy bills for millions of households across the continent just as weather forecasts anticipated temperatures below zero degrees Celsius in several European cities.
Energy costs have soared this year as the rebounding global economy drove up demand and, in Europe, calls for additional gas deliveries from Russia went unanswered. European gas prices have jumped more than 600 per cent since January and are now exceeding record highs set in October.
Low storage levels, competition from Asia for liquefied natural gas cargoes and doubts over Russia’s intentions have continued to push European prices higher, according to Laurent Ruseckas at IHS Markit, a consultancy.