Gas prices in Europe fell below $850 for the first time since February

Exchange gas prices in Europe for the first time since February 21 fell below $850 per 1,000 cubic meters. m, should from London ICE data.

Today, the price of the nearest February futures contract for natural gas at the TTF hub in the Netherlands fell to 75.55 euros per MWh, or about $827 per 1,000 cubic meters. m, taking into account the current exchange rate in the international market. The fall has already exceeded 11%. February futures on the TTF hub in the Netherlands opened trading at about $917 per 1,000 cubic meters. m.

Gas prices began to decline from the beginning of December. December 19 EU countries agreed gas price limit of 180 euros per 1 MWh, which corresponds to $1975 per 1000 cubic meters. The ceiling will come into effect on February 15, 2023. It will be activated if the gas price at the TTF gas hub in the Netherlands (the most liquid gas hub in the EU) 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.

December 22 Russian President Vladimir Putin signed decree according to whichGazprom”and its affiliates cannot fulfill obligations to foreign companies that are associated with countries that commit unfriendly actions against the Russian Federation.