For the first time since June 2021, European natural gas has fallen below the psychological mark of 30 euros. In August 2022, prices of more than 300 euros were paid at the peak.
The price of European natural gas has fallen below EUR 30 per megawatt hour (MWh) for the first time since June 2021. The trend-setting TTF futures contract for delivery in one month fell to EUR 29.75 per MWh in the afternoon. Gas prices are thus continuing the downward trend that has lasted for months.
Because of Russia’s war against Ukraine, natural gas prices had risen drastically by the summer of last year. In August 2022, prices of more than 300 euros were paid at the peak. A high dependency on Russian gas had fueled fears of an energy crisis.
Since then, however, prices have fallen significantly. After a mild winter, the natural gas storage facilities are well stocked. In addition, sufficient liquefied natural gas (LNG) could be imported from other countries. The weakening economic development is also dampening demand.
The price of gas is also currently well below the level it was just before the war began in February 2022. However, before 2021 it had consistently cost significantly less than 30 euros.