The energy crisis sparked by Russia’s invasion of Ukraine in early 2022 left Europe’s gas market highly sensitive to disruptions. Benchmark Dutch TTF gas futures trade nearly 17% higher on the month in European afternoon trade on Friday, after rising to more than 48 euros a megawatt hour in recent days. Still, some European countries such as Austria and Slovakia continue to receive Russian gas via the Sudzha interconnection point on the border with Ukraine—one of only two routes for Russian gas exports to Europe. Goldman Sachs raised its TTF forecast for next year to 40 euros a megawatt hour from 34 euros a megawatt hour previously, citing a colder-than-average start to the winter and LNG project delays. Prices are then estimated to fall to 36 euros and 24 euros a megawatt hour in 2026 and 2027, respectively, according to the bank.

Source: Wall Street Journal November 25, 2024 12:33 UTC