Gas prices in Europe return to pre-energy crisis levels

Natural gas prices in Europe fell to the band of 25 euros per megawatt hour due to low demand and the increasing participation of clean energy sources in electricity production, and fell to the lowest level since September 2021, when the effects of the energy crisis increased.

At TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, natural gas contract prices with a June futures contract closed on Friday at 24.5 euros per megawatt. hour.

Today, the contract is trading at 25.3 euros per megawatt hour, 3 percent more than at closing. Thus, prices have been brought to the lowest level since September 2021, when the effects of the energy crisis began to be felt.

The low demand for gas, the increase in warehouse occupancy rates and the increase in the participation of clean energy sources in electricity generation support the downward trend in gas prices, which have remained high in recent years. two years.

BREAK A RECORD IN AUGUST 2022

Gas prices reached record levels in Europe due to the imbalance between supply and demand that arose after the epidemic and supply restrictions after the war between Russia and Ukraine.

The price of gas, which on September 27, 2021 was 24.5 euros per megawatt hour, increased to 61.6 euros on February 24, 2022, due to the increase in demand after the epidemic and the escalation of geopolitical tension .

Prices, which have been constantly rising due to the war, exceeded €300 per megawatt-hour in August 2022, reaching their highest level in history.

On the other hand, prices in Europe continue to be above the average for the 2016-2020 period, despite testing below 25 euros due to the drop in demand and the high occupancy rates in gas tanks. (AA)