The price of gas in Europe has dropped to almost $600 per 1,000 cubic meters
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The cost of gas in Europe during the auction dropped to almost $600 per 1,000 cubic meters. m, testifies London ICE data.
Gas prices on Monday fell to $609 per 1,000 cubic meters. or €54.4 per MWh. The cost of the February gas futures on the TTF hub in the Netherlands closed trading at $622.5 per 1,000 cubic meters. m. The total price reduction for the day amounted to more than 15%.
February futures opened trading at $728.6 per 1,000 cubic meters. m. By 11.20 Moscow time price sank below $700 and was $660 (-9.2%) per 1000 cubic meters. m.
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, 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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