Gas price in Europe falls below $750 for the first time since November 2021
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The price of gas in Europe fell below $750 per 1,000 cubic meters on January 4. m for the first time since November 2, 2021. According to the London ICE exchange, cited by TASS, the overall price reduction on Wednesday is more than 3%.
The cost of February gas futures at the TTF hub in the Netherlands fell to $733 per 1,000,000 cubic meters. m, or 67 euros per MWh, taking into account the current exchange rate on the international market.
At the end of December, exchange prices for gas in Europe fell to a minimum since the end of June 2022 – $909 per 1,000 cubic meters. m, then for the first time since February 21 last year fell below $850.
Analysts earlier called The main reasons for the decline in gas prices are significant gas reserves in European underground gas storages (UGS), as well as wind power generation performance. After the start of the NWO in Ukraine and new anti-Russian sanctions in Europe, the energy crisis intensified. In March 2022, spot gas prices reached an all-time high, approaching $3,900 per 1,000 cubic meters. m. Then the quotes gradually declined, but in August they again switched to a sharp increase, although they could not beat the March record. In autumn, gas prices fluctuated in the range of $1,000-2,000 per 1,000 cubic meters. m.
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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