After the stormy rises at the start of the war in Ukraine, the price of gas has now stabilised. In the last five weeks it has even dropped to 36 euros per megawatt hour. According to climate and energy reporter Mark Beekhuis, some analysts even think that this price could continue to fall as low as 10 euros per megawatt hour. “This is historically low.”
This may not translate directly into cheap multi-year contracts with energy companies. Beekhuis explains that Goldman Sachs and the Boston Consultancy Group cannot rule out the possibility that the price of gas could explode again after a further drop to ‘over 100 euros per megawatt hour’. According to Beekhuis, energy companies buy several years in advance and “average the price in the proportion that they buy it.”
According to Beekhuis, what energy prices will do is “look at the coffee grounds”. However, the gas reserves of the Netherlands and most European countries are currently above normal and now amount to 60%. “That’s a lot,” says energy journalist Mark Beekhuis. “At the end of the heating season we are usually at 40%”
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.
