The cost of November gas futures on the Dutch gas hub TTF during the trading on October 6 exceeded the threshold of $ 1900 per 1000 cubic meters, which became a record value for the market, and then collapsed to almost $ 1200, follows from the data of the ICE intercontinental exchange.
So, at its peak (by 11:28 Moscow time), the fuel price reached 161.5 euros per MWh, and by 16:41 Moscow time it fell to 100.2 euros. After the futures price went up a little, and trading ended at around 104.9 euros per MWh, which is about $ 1270 per 1000 cubic meters.
Due to the skyrocketing gas price, ICE briefly limited trading in fuel futures, according to Bloomberg. According to the mechanism for limiting the interval value, if an order for trading does not fit into the specified range, it will not be accepted. This made it possible to reduce gas prices.
Earlier today, five countries of the European Union (EU) – France, Spain, Czech Republic, Greece and Romania – proposed to investigate the reasons for the record rise in gas prices in Europe, as well as create a common toolkit for the community’s reaction to gas price surges, develop general principles for storage fuel, coordinate procurement and reform the wholesale electricity market. The latter, in particular, implies the establishment of a link between the price for end users and the cost of electricity production. In addition, the five EU members called for diversifying energy supplies and reducing the community’s dependence on gas supplier countries through renewable energy.
The price of gas in Europe has been breaking records since the beginning of August, when in the middle of the month it reached $ 600 per 1,000 cubic meters for the first time in history and has more than tripled since then. This is taking place against the backdrop of settled calm weather, which led to a significant drop in wind generation, as well as low occupancy of continental UGS facilities ahead of the heating season, shortages of LNG and coal, as well as uncertainties with the timing and volumes of supplies via the new Nord Stream 2 gas pipeline.