European natural gas prices near 44 euros amid Ukraine transit route uncertainty

Investing.com -- European natural-gas prices are trading just below 44 euros a megawatt hour, following a significant increase in the previous session due to the uncertain future of Ukraine’s gas-transit route.

The benchmark Dutch TTF contract has risen by 1.5%, trading at 43.73 euros a megawatt hour, and showing an increase of more than 6% over the week.

The contract for the flow of Russian fuel through Ukraine is set to expire in less than two weeks. This has caused European leaders to scramble in search of a potential alternative to maintain the intactness of supplies.

Meanwhile, the demand for gas in Europe has seen a substantial growth, leading to a rapid decrease in gas inventories and consequently, an increase in prices. The exports of pipeline gas from Norway are showing a downward trend compared to the previous year.

However, there is a slight increase in LNG imports, although they are still not on par with the numbers from the past two years.

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Source: Investing.com