Natural gas prices on European markets show an upward trend
Tensions between the US and Iran, along with low storage levels, have led to rising energy costs across the European continent.
Natural gas prices in Europe have risen due to concerns that tensions between the US and Iran could disrupt energy supplies, as well as storage levels remaining below seasonal averages.
Price Increase in TTF Contracts
Prices for October-delivery contracts traded at the Netherlands-based virtual natural gas trading point TTF followed an upward trajectory.
The megawatt-hour price, which closed at 71.95 euros on Friday, recorded an increase of 3.3 percent during the day.
Tensions Between the US and Iran
Concerns that energy supplies from the Persian Gulf could be disrupted supported the upward trend in the markets.
Iran's plan to establish a new control corridor in the Sea of Oman and the Strait of Hormuz drew attention.
Military Developments in the Region
Reciprocal moves and military clashes heightened anxieties that energy shipments could be delayed.
These developments directly increased uncertainty and risk perception in the markets.
Storage Occupancy Rates in Europe
According to Gas Infrastructure Europe data, the occupancy rate of storage facilities in European Union countries stands at 66.6 percent.
As the summer storage injection period nears its end, rates remain below the seasonal average.
Future Storage Targets
Following the Russia-Ukraine War, the EU had made it mandatory for storage facilities to be 90 percent filled by November 1.
Taking market conditions into account, flexibility has been granted to member states in achieving these targets.
Market Analysts' Expectations
If the current pace is maintained, the storage occupancy rate is expected to reach 70-75 percent at the beginning of the heating season.
It is stated that the main issue will not be the availability of gas, but rather procuring it at high prices.