Gas Price Increase Is a Geopolitical Issue, EU Says

The European Union views the rise in gas prices as a geopolitical issue. This was announced by the EU's chief diplomat, Josep Borrell, after a meeting of the EU Council in Luxembourg, according to TASS.

"Gas prices must be viewed from a geopolitical perspective. We intend to dedicate the next meeting of the EU Foreign Affairs Council (which will take place in Brussels in November) to this topic," Borrell stated.

In response to reporters' questions about Russia’s role in the gas crisis in Europe, Borrell noted that "Russia is strictly fulfilling all gas supply agreements with the EU, but is not providing additional volumes."

According to the trading data, the gas price in Europe dropped to $980 per 1000 cubic meters at the London ICE market on October 18. At the Dutch TTF hub, the price for November contracts fell to $983.5 per 1000 cubic meters. The overall decline in price compared to the previous trading day is about 10 percent.

TTF set a historical record on October 6, when the gas price exceeded $1900 per 1000 cubic meters; however, it has since started to decline sharply. The high volatility in Europe’s gas prices is also linked to the low fill levels of gas storage facilities ahead of the upcoming winter.