The gas price in Europe crossed the $1000 mark for the first time in history

During Tuesday's trading, the price of gas in Europe reached $1,000 per 1 thousand cubic meters, setting a historical record. Currently, the contract price for October at the TTF hub in the Netherlands has accelerated its growth to $1,031.

Prices in Europe jumped after prices in Asia: the November futures for the Asian spot LNG index JKM Platts reached $1,042 per thousand cubic meters. Europe is forced to compete for LNG with the premium market of Asia in the context of a general shortage of gas supplies (via gas pipelines and in liquefied form).

According to economists, since the spring of 2021, gas prices in Europe have already jumped four times. One of the main reasons for the growth was the low stock in European underground gas storage facilities, as well as an acute shortage of liquefied natural gas.

The previous historical maximum ($969 per thousand cubic meters) was reached in March 2018, when Europe was covered by the legendary cold front «The Beast from the East». Then the price record fell at the end of winter, but in the current situation, the heating season has not even begun yet, so a further increase in the cost is not excluded.