Gas prices in Europe fell below $550
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Exchange gas prices in Europe for the first time since the end of August 2021 fell below $550 per 1,000 cubic meters. m, should from London ICE data.
The price of the March (nearest) gas futures on the TTF hub in the Netherlands opened trading at $566.3 per 1,000 cubic meters. m. By 10.25 Moscow time, the price of gas dropped to $545.2 per 1,000 cubic meters. m, or €49.56 per MWh.
By 10:49 Moscow time, the price of the futures rose to $563.5 per 1,000 cubic meters. m, or €50.375 per MWh. Now it is falling again. As of 11:01 Moscow time, the gas price was $559 per 1,000 cubic meters. m, or €50 per MWh.
In mid-January, the cost of the February futures went down below $600 per 1000 cubic meters m for the first time since August 2021.
Earlier, analysts attributed the decline in gas prices to significant reserves in European underground gas storages (UGS). According to data from Gas Infrastructure Europe (GIE) dated February 15, UGS facilities in Europe are 64.81% filled, which is 20.25 percentage points higher than the average for this date over the past 5 years. In addition, gas quotes are affected by the forecast of fairly warm weather in Europe this and next week, transmits TASS.
On December 19, 2022, the EU countries agreed on a gas price ceiling of €180 per MWh, which corresponds to $1,975 per 1,000 cubic meters. m. As part of the European gas market correction mechanism, it began to operate on February 15, 2023.
It is assumed that the ceiling will be activated if the price of TTF gas exceeds the agreed level, and the spread to the price of liquefied natural 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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