SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Gas price surges upwards – expected to fall back

Summer's heatwaves are pushing up the price of liquid fossil gas in Europe, which has already risen by over 40 per cent since February. The development risks pushing up the prices of Swedish electricity bills – although many are counting on a downward pressure on gas prices going forward.

» Updated: 16 July 2024, 16:23

» Published: 26 June 2024

Gas price surges upwards – expected to fall back
Photo: Aaron Favila AP/TT

The summer heatwaves are pushing up the price of liquid fossil gas in Europe, which has already risen by over 40 per cent since February.

The development risks pushing up the prices of Swedish electricity bills – although many are counting on a downward pressure on gas prices going forward.

The futures contract for deliveries of fossil gas next month is rising 1.6 per cent to 34.64 euros per megawatt-hour on the commodity exchange in Amsterdam in Wednesday's trading.

Besides the increased demand for gas for cooling in countries such as the USA, Japan, and South Korea during the summer heat, higher freight prices across the Atlantic and the fact that many tankers are avoiding the Red Sea due to the risk of attacks from the Iran-backed Houthi militia are contributing to the upward pressure on gas prices. This is in addition to production disruptions in Norway.

New sanctions against Russian gas are a risk factor for further price increases.

Europe, however, entered the summer season in April with unusually large gas reserves after the heating season. And although the replenishment with new gas deliveries is currently unusually limited, this is not expected to threaten the goal of having the gas reserves in Europe fully replenished again by October.

The price of liquid fossil gas on the commodity market in Amsterdam was, under 2022 – in the wake of curtailed Russian deliveries – up to almost 340 euros per megawatt-hour. This can be compared to this year's price peak of 36 euros.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
2 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

Nvidia's share price is pressured – despite strong report
2 MIN READ

Nvidia's share price is pressured – despite strong report

Still sour on the Stockholm Stock Exchange
2 MIN READ

Still sour on the Stockholm Stock Exchange

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic

USA wants to force Google to sell Chrome
2 MIN READ

USA wants to force Google to sell Chrome

New method reveals pension fraud
3 MIN READ

New method reveals pension fraud

Most Minus Signs on Asian Stock Exchanges
1 MIN READ

Most Minus Signs on Asian Stock Exchanges

One of the world's richest bribed in the USA
2 MIN READ

One of the world's richest bribed in the USA

This is how Musk will save billions
2 MIN READ

This is how Musk will save billions

Yet Another Extremely Strong Report from Nvidia
2 MIN READ

Yet Another Extremely Strong Report from Nvidia

Better than expected for Nvidia
1 MIN READ

Better than expected for Nvidia

Department store giant sinks on Wall Street
1 MIN READ

Department store giant sinks on Wall Street

The FI's Advice: Have Accounts in Multiple Banks
1 MIN READ

The FI's Advice: Have Accounts in Multiple Banks

Break in Trend - Household Costs No Longer Rising
2 MIN READ

Break in Trend - Household Costs No Longer Rising

4,000 to Leave the Car Giant
1 MIN READ

4,000 to Leave the Car Giant