Gas price in Europe falls below $700 for the first time since September 2021
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The price of gas in Europe fell below $700 per 1,000 cubic meters on January 5. m for the first time since September 2021, should from London ICE data.
The cost of February futures for gas at the TTF hub in the Netherlands fell to $696.4 per 1,000 thousand cubic meters. m. As of 10.12 Moscow time, the cost was already $ 726.3. The previous gas price went down below $750.
Analysts have previously cited significant gas reserves in European underground gas storages (UGS) as well as wind energy generation as the main reasons for the decline in gas prices. After the start of the NWO in Ukraine and new anti-Russian sanctions in Europe, the energy crisis intensified.
On December 19, the EU countries agreed on a gas price ceiling of 180 euros per 1 MWh, which corresponds to $1,975 per 1,000 cubic meters. m. As part of the European gas market correction mechanism, it will come into effect on February 15, 2023. The ceiling will be activated if the gas price at TTF (this is the most liquid gas hub in the EU) exceeds the agreed level, and the spread to the price of liquefied natural gas gas (LNG) in the EU will be more than 35 euros per 1 MWh. However, the ceiling will not apply to OTC transactions.
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