European gas prices pushing higher

Energy prices hit four-month high as a strike in Norway adds to supply woes

Natural gas prices in Europe have surged to the highest since March amid reduced Russian supplies and an impending strike in Norway, a major energy supplier to the continent.

August futures on the TTF trading hub in the Netherlands jumped as much as 10%, reaching $1,722 per thousand cubic meters or €161.5 ($168.8) per megawatt-hour in household terms.

The planned industrial action at the gas fields of Europe’s strategically important supplier is reportedly threatening to cut daily gas exports by nearly 13%, tightening the grip on a market that’s already reeling from reduced deliveries from Russia.

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Three Norwegian fields are set to be shut down by the strike starting Tuesday, while planned action the following day would take out another three projects, Bloomberg reports.

“Supply concerns are extremely high and the market continues to add risk premium,” analysts at trading firm Energi Danmark said in a note seen by the agency. 

Analysts expect the energy situation to remain tense this week with further price hikes possible if flows remain low.

European gas prices have more than doubled this year, having peaked at a historic high of $3,900 per thousand cubic meters in early March after Russia launched a military operation in neighboring Ukraine.

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