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Recent Trends in Natural Gas Prices in Europe
Last week, the cost of natural gas experienced a significant rise of 13%, primarily due to concerns surrounding supply disruptions.
Market Reactions Amid Middle East Tensions
Despite the turmoil in global markets, the price of natural gas in Europe saw minimal impact amidst escalating tensions in the Middle East. At the Dutch TTF exchange, gas prices for September dropped to just under 35 euros per megawatt-hour during midday trading, reflecting a decrease of approximately 5% from the previous week’s closing levels.
However, by the afternoon, this decline began to reverse, with prices climbing to 35.40 euros per megawatt-hour, marking a reduction of 3.3% from earlier in the day. Market anxiety is largely tied to fears of a potential missile strike from Iran on Israel, which could heighten conflict in the region.
Volatility and Price Fluctuations
In recent weeks, volatility has returned to the TTF market due to ongoing supply concerns. The price of gas surged by 13% last week, a somewhat unusual trend for European markets. Notably, at the beginning of June, gas prices reached an annual peak of nearly 37 euros per megawatt-hour. In contrast, on February 23, during the height of the heating season, prices were recorded at 24 euros per megawatt-hour.
TTF Index and Local Supply Dynamics
The TTF index serves as a benchmark for most liquefied gas contracts across Europe. In Bulgaria, the gas supplier “Bulgartransgaz” has not purchased liquefied gas in the past two months. Instead, the company has been able to capitalize on reduced consumption during the summer months and the reserves accumulated at the “Chiren” facility, which have become advantageous for the company following compensation from the European Commission.
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Energy Prices in Bulgaria for July and August
In the months of July and August, Azerbaijan has been a focal point for energy discussions in Bulgaria.
On August 1st, the energy regulatory authority approved a gas price set at just below 61 Bulgarian leva per megawatt-hour.
*As of 5:15 PM Bulgarian time
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