For the first time since the outbreak of war in Ukraine, the price of gas has fallen again to 85 euros per megawatt hour. This continues the downward trend of recent months.
Yesterday the price of gas was still well above 90 euros per megawatt hour. The price of fuel has been declining for six consecutive days on mild weather in Europe, which is expected to continue across much of the region into the holiday season.
On the major gas exchange in Amsterdam, the price fell nearly 6% on Friday morning to 86.50 euros per megawatt hour of gas. The price of gas has already dropped more than 20% this week and is now at its lowest level since mid-June.
Weather forecast
Weather forecasts indicate that temperatures will be normal or above average until early January, with warmer-than-normal temperatures in parts of central and southern Europe in particular. Additionally, plentiful supplies of liquefied natural gas (LNG), full gas storage facilities, and lower gas consumption by industry during the holiday season are driving gas prices down.
The winter storm ravaging large parts of the United States threatens to temporarily halt the export of LNG from the Gulf Coast, which could affect the price of gas on the European market in the coming days. There is also the risk that Russia will cut altogether the small amount of gas it continues to send to Europe in response to the gas price cap that will take effect in the European Union next year.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
