Lithuania Energy Markets: Prices Rise for Most Resources Amidst Global Tensions

Prices for nearly all energy resources in Lithuania saw an increase last week. This rise is attributed to the renewed military conflict in the Middle East and increased natural gas consumption driven by hot weather.

The price of natural gas at the TTF trading point rose by 2.3% over the past week, with the weekly average price reaching 45.0 EUR/MWh. This is up from 43.98 EUR/MWh the previous week. Compared to the same period last year, natural gas prices were significantly lower, averaging 33.8 EUR/MWh a year ago and 33.03 EUR/MWh in early July 2024. Futures contracts suggest prices are expected to remain 0-3 EUR/MWh higher in the near future, fluctuating between 26-46 EUR/MWh.

The events in the Middle East also impacted oil prices. The average price of Brent crude oil increased by 4.1% last week, reaching 75.3 USD/bbl, up from 72.3 USD/bbl the prior week. This contributed to rising fuel costs in Lithuania, with average gasoline prices increasing by 1.4% and diesel prices by 1.1%. However, the price of LPG decreased by 1.9%. Biodiesel prices in Lithuania rose by 2.29% last week.

In terms of storage, the Inčukalns gas storage facility is currently filled to about 40.96%, up from 38.62% the previous week but down from 46.74% a year ago. Gas quantities in European storage facilities stand at approximately 51.84%, an increase from 50.03% last week, but lower than the 63.02% recorded a year ago. The Klaipėda LNG terminal supplied 496.2 GWh of natural gas to the market last week, an increase from 447.46 GWh the week before. Natural gas consumption in Lithuania decreased by 5.34% compared to the previous week, with 152.82 GWh consumed.