European gas price drops to lowest level since summer 2021

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At the start of the week, the one-month delivery price of the trend-setting futures contract TTF dropped to €42.50 per megawatt hour (MWh). European gas last got cheaper in August 2021.

Due to Russia’s aggressive war against Ukraine, natural gas prices have increased significantly over the past year. At the peak, prices in excess of 300 euros were paid after natural gas cost 20 euros per MWh for a long time. The high dependence on Russian gas had led to an energy crisis.

However, since December, the price of natural gas has been in a continuous downward trend. During that time, the listing dropped 70 percent. Natural gas storage facilities, which are relatively full towards the end of the winter months, are one of the main reasons for this.

According to the latest data from the European storage association GIE, the occupancy rate in all German storage facilities on March 4 was 67.70 percent. Although gas reserves have been declining continuously since January, they are still significantly above the previous year’s comparable value.

The reason why the filling level is high every year is the decrease in demand due to LPG imports and weather conditions. There is also savings, especially in less used industries for cost reasons.

(SDA)

Source :Blick