Gas prices have reached new heights
Record prices reflect Europe’s winter gas fears
It is difficult to predict just how the continent’s supply and demand will balance
The benchmark Ice TTF front-month European gas contract crested a new record high above €225/MWh ($227/MWh) in mid-August, having previously shied away from €200/MWh in early March’s previous peak, with over-the-counter (OTC) prices following suit (see Fig.1). The eye-watering price levels are testament to the fear and uncertainty over how Europe might cope if Russia cuts supply further—a bellicose statement by Russia’s Gazprom was the catalyst for the latest price spike. But it may also be a reflection of a traded gas market that has become both less liquid, therefore amplifying price moves, and more prone to moving on rumour rather than fundamentals.
Also in this section
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve
1 August 2025
A number of companies have filed arbitration claims against Gazprom over non-deliveries of contracted gas or other matters—and won. The next step is to collect the award, but this is no easy task
1 August 2025
Europe’s refining sector is desperately trying to adapt to a shifting global energy landscape and nowhere is this more apparent than in its largest economy
1 August 2025
The Middle East natural gas playbook is being rewritten. The fuel source offers the region a pathway to a cleaner, sustainable and affordable means of local power, to fasttrack economic development and as a lucrative opportunity to better monetise its energy resources.
