Gas prices in Europe drop below $600 per thousand cubic metres

Gas price in Europe has fallen below $600 per thousand cubic metres for the first time since August 31, 2021

Exchange gas prices in Europe have accelerated the pace of decline to about 3% and for the first time since August 31, 2021 have fallen below $600 per thousand cubic meters, according to data from the London Stock Exchange ICE.

February futures on the TTF index (Europe’s largest hub located in the Netherlands) opened trading at $728.6 (+0.2%). Minutes earlier their cost fell to $599 (-3.2%). The dynamics of quotations is given from the calculated price of the previous trading day, Friday – $727.1 per thousand cubic meters.

Exchange prices for gas in Europe traded on January 16 for the first time in 16 months, since September 2021, falling below $610 per thousand cubic meters. Experts noted that the drop in the price of gas on the European exchange was due to warming and increased energy production from wind.

But despite the current decline, gas quotations are more than double the long-term average. Such consistently high prices have not been seen since 1996 in the history of European gas hubs.

Gas prices in the region have already risen noticeably since the spring of 2021. At the time, TTF quotations varied between $250 and $300 per thousand cubic meters, before peaking at over $600 at the end of the summer and $1,000 in the autumn. In winter 2022, prices crossed the threshold of two thousand dollars per thousand cubic meters, and in early spring, due to fears of an import ban on Russian energy resources, they reached a record high of $3,892 per thousand cubic meters.

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