36 minutes agoGas prices in Europe drop below 100 euros since Russia's supply cuts
Periskopi(4 years ago)
(4 years ago)European natural gas prices have fallen below 100 euros for megawatts for the first time since Russia lowered supplies this summer, with warm weather and almost full gas storage easing concerns about winter shortages. The decline of the price will come as an incentive for EU leaders, [...]
The price drop will come as an incentive for EU leaders, who are working to set a limit on the price of fuel, while fighting high inflation and a slow-down economy, and in an effort to stop Moscow's funds for its invasion in Ukraine.
LNG gas prices, according to “Financial Times”, dropped by 93,35 $ /MWh on Monday, almost 20% compared to Friday, the lowest since mid-June.
European gas prices are now 70 per cent below August levels, when they increased over 300 euros/MWh, although they are still well above the range of 20 to 40 euros/MWh, with which they were traded mainly over the last decade.
James Waddell at “Energy Aspects” said prices were dropping in the short term due to the remaining “capacity limit remaining for storage, low gas demand due to mild weather and overloading in LNG's behavior and its flow to the east within Europe”.
Tom Marzec-Manser of ICIS said consumption was about 20 percent lower in Europe than usual for this period of the year.
The growth of liquid natural gas imports to replace Russian gas pipeline supplies which now constitute only 9 percent of the EU's supply, up from 40 percent last year, have helped European storage reach more than 90 percent capacity, while warm weather has meant delays in heating demand.
