Goldman Sachs Warns of Ongoing Risk of Rising Gas Prices in Europe

Forex - In Europe, natural gas prices continue to remain high on a weekly basis despite exhibiting volatility. The Netherlands TTF benchmark contract fell by 0.8% to €49.88 per megawatt hour. However, prices had risen to €51 in the previous session, reaching the highest level in the last 14 months and recording a weekly increase of 9.1%.

According to analysts at Goldman Sachs, although Russia's cessation of gas flows through Ukraine is a significant factor, the primary reason for the price increase is the above-average cold weather forecasts for the next two weeks. Goldman analysts noted that this situation has been further exacerbated by low wind power in December and production cuts in Norway. According to Goldman, if cold weather forecasts materialize without any offsetting factors, there is a risk that gas prices could rise to a range of €63-84 per megawatt hour in the coming months.