Gas prices in Europe fell below $700
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The price of gas in Europe fell below $700 to $660 per 1,000 cubic meters. m, according to the London Stock Exchange ICE.
The cost of the February gas futures on the TTF hub in the Netherlands opened trading at $728.6 per 1,000 cubic meters. m. As of 11.20 Moscow time, the price was $660 (-9.2%).
Last time gas price in Europe went down below the indicated mark on January 5. Then the cost of the February gas futures at the TTF hub in the Netherlands fell to $696.4 per 1,000 cubic meters. m.
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 high wind energy generation. The relatively warm weather in Europe also played a role.
December 19 EU countries agreed gas price ceiling of 180 euros per 1 MWh, which corresponds to $1975 per 1000 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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