The price of natural gas moved to extreme levels on Friday, touching the all-time high in Europe, still driven by prospects of a disruption in deliveries from Russia.

The price of European natural gas soared and reached 342,005 euros per MWh this Friday, just below its historical session record (345 euros per MWh) registered in March after the Russian invasion of Ukraine. Vers 4:00 p.m. GMT (6:00 p.m. in Paris), contracted at the term of the Dutch TTF, referenced by the European market of natural gas, it will evolve to 307 euros per megawattheure (MWh), in light of the baisse sur la séance mais envol de plus de 24% sur week.

Gas prices have been buoyed over the past week by upcoming Russian supply cuts via Nord Stream 1, due to pipeline maintenance, according to an announcement by Russian giant Gazprom. If Russia decides to “continue to weaponize its supplies and keep the pipeline closed after the end of maintenance, the risk of new outbreaks remains,” said Ole Hansen, an analyst at Saxobank.

damaged gas terminal

In the United States, Freeport LNG announced Tuesday that its natural gas terminal near Houston, Texas, which had been damaged by fire in June, would not resume service until November, one month late.

Driven by gas prices, Europe experienced a week of record electricity prices for delivery in early 2023, peaking on Friday at €950 per MWh in Germany and €1,300 in France. A year ago, prices in these two countries were around 85 euros per MWh.

In France, EDF has announced the extension of the closure of the nuclear reactors affected by corrosion problems. Only 24 of EDF’s 56 nuclear reactors are operational at the moment, reducing French electricity production to a historically low level and mechanically raising prices.

A situation that should further support “an already very visible increase in demand for fuel-based products, in particular diesel and, later this fall, also for heating oil, to the detriment of gas”, says Ole Hansen .

“Adjustments” demanded by Tehran

Oil prices remained stable this Friday, between potential production cuts by OPEC+ member countries and the possibility of a return to the 2015 Iranian nuclear agreement. du Nord, the reference crude in Europe, for delivery in October, it was down 0.19% at $99.53, hesitating around the $100 mark.

A barrel of West Texas Intermediate (WTI), its US counterpart, for delivery the same month, fell 0.24% to $92.30. The Iranian Foreign Ministry confirmed on Wednesday that it had received a response from the United States on the “adjustments” demanded by Tehran to the proposed agreement presented by the European Union on the Iranian nuclear file.

A positive outcome of the negotiations would lead to the lifting of part of the US sanctions against Iran and a return to favor of Iranian crude oil on the international market. However, oil rose during the week after Saudi Arabian Energy Minister Abdelaziz bin Salman opened the door to a possible production cut by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).