Gas prices in Europe. Source: Trading Economics

According to  Trading Economics, the gas price in Europe on July 19 was 164 euros/mwh ($167/mwh), up nearly 4% from the previous day.

The price of gas in the UK was 210 UK cents/therm ($2.5/therm), up 8.4% from the previous day.

Historical heat in Europe pushed gas prices up. Parts of France and Spain are battling widespread wildfires, with temperatures expected to rise above 40 degrees Celsius in the coming days.

Hot weather makes the demand for electricity to run the air conditioner also increase. Enagas, the operator of Spain’s gas transmission system, said the need for natural gas to generate electricity in the country was 800 gigawatt hours, setting a new record.

This heat wave comes as Europe struggles to fill stockpiles before winter. In addition, Nord Stream 1, the lifeline of the pipeline transporting gas from Russia to Europe, is under maintenance on July 11-21. During the maintenance period, the pipeline is completely closed. It is not clear whether Russia will restore 100% of gas flow through the pipeline after the new development.

In the context of gas being a hot topic in Europe, on July 18, the International Energy Agency (IEA) warned Europe to cut gas consumption immediately before winter arrives.

The International Energy Agency (IEA) Executive Director Fatih Birol said Europe needs to drastically reduce its natural gas consumption in the coming months to prepare for a harsh winter. According to the IEA leader, although the European Union (EU) has made some progress in diversifying energy supplies, the supply from Moscow still has many potential risks, and the possibility of being cut off is not excluded. completely broken. Mr. Birol said that in the next 3 months, the EU needs to save another 12 billion m3 of gas.

Gas prices in the US also increased by nearly 0.5% compared to July 18 and traded at 7.5 USD/MMBtu, the highest in 5 weeks.

Coal futures in Australia, another commodity in the energy group, were mixed with gas, down 3.4% from the previous day and trading at $396/ton. Although falling, coal prices are at a high level and only about 10% lower than the record in early March.

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