Gas prices in Europe fell to a 17-month low
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Quotations of gas contracts fell below $560 per thousand cubic meters on Friday, which is the lowest value in 17 months.
It is reported Bloombergdata Barchart.
Prices have fallen by more than 80% from their August peak, when quotations jumped to $3,500 due to restrictions on supplies from Russia to Europe. The blocking of gas flows by the Russian Federation caused fears that it will be difficult for Europe to fill gas storages and get through the heating season.
However, relatively mild weather, efforts to reduce energy consumption and a significant flow of liquefied natural gas from the US to Qatar are easing the problem.
Base futures for March fell in price by 4.8% to 49.5 euros per MWh, or 555.73 dollars per thousand cubic meters. This is the lowest closing level since late August 2021. This year, the price of gas in Europe fell by about 35%.
At the same time, prices may still rise if the cold weather continues until the end of winter, or if supply disruptions occur. Competition with Asia for liquefied gas may also create a risk of price increases.
For now, high gas storage levels are providing a buffer for Europe, a sign of optimism that the region can survive this winter and next.
Read also: “Cold, cold, wolf’s tail.” Don’t freeze. How Putin will lose the gas war
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