On December 29 local time, the Dutch TTF natural gas futures price fell 0.04% to 83.8 euros / MWh. Thanks to mild weather and high inventory levels, European natural gas prices fell once to 77 euros per megawatt hour on December 27, the price level before the Russian-Ukrainian conflict began.
In the face of falling natural gas prices, senior energy analyst Livia Gallarati warned that “very difficult conditions remain”. He said that although the price of 83 euros per megawatt hour in Europe is a little lower now, cold weather in the next few months cannot be ruled out. And Europe will need Russian gas to balance next winter, and supplies will be much lower than usual. “So in the long term, all of this could mean that we are still in a very difficult situation,” said Livia.
In August, European gas prices rose to a record high of 345 euros per megawatt-hour. On December 19, local time, EU countries reached an agreement to cap the price of natural gas at 180 euros per megawatt-hour The price cap mechanism will start on February 15, 2023. However, after entering the winter, Europe has introduced mild weather instead, which not only reduces the demand for heat, but also helps European natural gas inventories to remain above the average level of previous years.
Not too cold this winter? European gas prices fell again. Click on the video to see it!