Gas futures surge pushes European power above €110/MWh

Weekly average electricity prices cleared €110/MWh across most of Europe's main markets last week, according to AleaSoft Energy Forecasting. The proximate driver: gas futures prices rose to their highest point since March 2026, tightening the marginal cost floor in gas-set hours across the continent.

The breadth of the move matters. A single-zone spike can reflect local congestion or outages; a floor holding above €110/MWh across multiple zones simultaneously signals a systemic fuel-cost shift rather than a regional event. AleaSoft's analysis covers Europe's main electricity markets without specifying individual zone splits.

Statkraft's CEO, speaking to Reuters on 21 July, flagged the risk that higher prices prove prolonged rather than transient, a view consistent with gas futures remaining elevated heading into the second half of summer. Traders pricing Q3 and Q4 strips should weight the persistence of the gas signal over any single week's weather outcome.