Gas prices in Europe fell below $600 per thousand cubic meters
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Exchange gas prices in Europe for the first time since the end of August 2021 fell below $600 per 1,000 cubic meters. m, should from London ICE data.
Today, the price of the next February futures contract for natural gas at the TTF hub in the Netherlands fell to 53.5 euros per MWh, or about $590 per 1,000 cubic meters. m, taking into account the current exchange rate in the international market.
There are several reasons for the decline in gas prices in Europe. Previously, analysts pointed to significant gas reserves in European underground gas storages (UGS). According to Gas Infrastructure Europe (GIE) dated January 15, UGS facilities in Europe are 81.49% full. In addition, gas prices are affected by high wind energy generation and warm weather.
On December 19, 2022, 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 mechanism for correcting the gas market, it will begin to operate from 15 February. 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 is more than 35 euros per 1 MWh. However, the ceiling will not apply to OTC transactions.
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