European natural gas prices have risen by 3% in midday trade, with the Dutch TTF contract, a key benchmark, standing at 49.67 euros per megawatt hour. This price hike is due to rapidly diminishing inventories and uncertainties surrounding supply.
According to Gas Infrastructure Europe, an industry group, EU storage was at 55.5% capacity on Monday, with net withdrawals approximated at 4.8 terawatt hours.
In the upcoming weeks, an increase in inflows of liquefied natural gas is anticipated. However, there is still uncertainty regarding the supply of gas via the Ukrainian pipeline system following the expiration of a transit agreement with Russia.
President Volodymyr Zelensky of Ukraine has indicated that his country is prepared to transit fuel from Azerbaijan using crucial infrastructure, according to ANZ Research. They also stated that such a contract could be established quickly if an agreement is reached. Despite this potential solution, the lack of details has left the market uncertain about the impact on Europe's gas supply.
