Gas prices in Europe have dropped below a thousand dollars per thousand cubic metres for the first time since October 25
Exchange prices for gas in Europe have fallen below $1,000 per thousand cubic meters for the first time since October 25, losing more than 6 percent compared to Wednesday’s settlement price, according to data from the London-based ICE exchange.
January futures for the TTF index (Europe’s largest hub, located in the Netherlands) again opened trading at $1,045.5 per thousand cubic metres (-2.4%). As of 11.08 Moscow time their price was $1,003.2 (-6.4%). Minutes before that value had dropped below $1,000 per thousand cubic meters for the first time in two months – to $999.6 (-6.7%). The dynamics of quotations is given from the settlement price of the previous trading day – $1,071.4 per thousand cubic meters.
The countries of the European Union agreed on Monday to set a ceiling exchange price for gas. It will be €180 per MWh (nearly $2,000 per thousand cubic metres at the current exchange rate) and will take effect on February 15.
The measure is aimed at protecting European households and businesses from gas price hikes. The high cost of energy in Europe, as noted by the Western media, has caused the highest inflation in decades.
Gas prices in Europe rose markedly as early as last year. While in spring the gas quotations by TTF varied in the range of 250-300 dollars per thousand cubic meters, by the end of summer they were over 600 dollars, and in autumn – already 1000 dollars. This winter the prices crossed the threshold of $2,000, and in early spring reached the record price of $3,892 per thousand cubic meters due to concerns about the ban on imports of Russian energy resources.
Despite the current decline, gas quotations are several times higher than the long-term average. Such steadily high prices have not been seen in the history of European gas hubs since 1996.
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