We have spoken in detail this year about the drivers of surging gas & power prices. In the space of the last 50 days, TTF prices have jumped by a further 75%, with the low volumes booked in the Russian capacity auction on Monday sparking a further leg up.
Surging hub prices have seen a significant demand response in Europe, with UK industrial gas demand dropping to around 40% below the seasonal average, while shutdown of fertiliser and ammonia plants have led to government intervention. Power prices are spiking in parallel and smaller energy retailers are falling over.
We will be back with more analysis of the current state of play in European gas & power markets in Monday’s feature article.