Natural gas in Europe rose to 105 euros per megawatt-hour in just one day after hitting a three-week price bottom of about 95 euros.

The rise in the price of natural gas began on Tuesday evening after information that the giant natural gas field Troll in Norway has suffered an unplanned interruption. Norwegian network operator Gassco said the duration of the shutdown caused by compressor damage was unclear.

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The upward price movement is deepening during trading on Wednesday, as investors are waiting for a draft document proposed by the European Commission, which will require EU member states to fill their gas storage facilities to 90% of capacity before each winter season (until November 1 of each calendar year).

Energy traders note that this goal will be difficult to achieve even in times when demand is declining, according to Reuters.

At the same time on Wednesday, wind energy production in the UK and Germany is expected to be below seasonal for the rest of this week, which will increase gas demand for electricity production.

The current warmer weather is forecast to end next week, when temperatures will fall below seasonal levels again, according to data from Refinitiv Eikon.

In terms of natural gas supply, Russian gas supplies to Europe via the Nord Stream 1 pipeline across the Baltic Sea declined slightly on Wednesday, while reverse gas supplies east of Germany to Poland through the Yamal-Europe pipeline continue.

Meanwhile, Russian Deputy Prime Minister Alexander Novak has again threatened that global energy markets will collapse if sanctions are imposed on Russian oil and gas, as Russia is a major exporter of hydrocarbons.

All this contributes to today's increase in the price of Dutch gas futures hub TTF by more than 6% to 105 euros per megawatt-hour.

/BNR

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