European prices increased Friday as hopes for a Russia-Ukraine cease-fire diminished and supply constraints loom on the horizon.

The benchmark Dutch TTF gas contract rose 0.8% to €33.45 per megawatt hour and is heading toward a 4.1% gain for the week, fully recovering from losses in the previous week.

Gas prices had fallen to their lowest level in more than a year before the summit between President Trump and Russian President Vladimir Putin in Alaska in mid-August. However, those negotiations concluded without any concrete agreements.

Market focus is now shifting to maintenance work in Norway, which will reduce Norwegian gas flows to Europe, according to ING analysts.

European Union gas storage currently stands at nearly 75% capacity, below the five-year average of 82% and significantly lower than last year’s 91% level for this time of year.
Source: Investing.com