Following the gas price, the Dutch electricity price increased by more than 15% last month to about EUR 85/MWh. In the gas market, we have seen a large increase in the number of long positions since the beginning of this year. Due to the expectation of many investors for higher prices, the number of long positions has grown to a record number. However, this extreme positioning may lead to lower prices when investors decide to take their profits, especially now that inventories are well stocked and if gas demand remains lower in the coming months.
The different electricity prices in Southern Europe and Northern Europe are largely explained by water buffers due to precipitation differences. In Northern Europe, a wet summer resulted in well-filled water reservoirs and low electricity prices. In southern Europe, on the other hand, a dry and hot summer leads to a drop in hydropower production and higher prices.