Nearly five times cheaper than in August: The wholesale price of natural gas in Europe fell to its lowest level since the start of the war in Ukraine on Monday, continuing its decline thanks to a relatively warm winter that saves inventory. The reference contract for the continent, the TTF in the Dutch market, fell another 4.67% to 72.75 euros per megawatt hour (MWh) for delivery in February, around 09:35 (08:35 GMT) on Monday morning, the lowest price since February 21
The price of gas, for delivery the following month, has lost almost 50% in one month… and has fallen to a large extent from the summer peaks: in August 2022 it had peaked at 342 euros per megawatt hour. Gas prices began to rise in the fall of 2021, with the start of a reduction in Russian gas deliveries to Europe, and then very sharply after the invasion of Ukraine on February 24, 2022. Since then , the gas pipelines between Russia and Europe have had almost all shut down. Trading volumes on Monday were weak as the main commodity exchange, London, was closed.
gas reserves
This downward trend has been possible thanks to “the large gas stocks that have accumulated and the demand that is moderating, in particular thanks to favorable weather conditions,” explains Sebastian Paris Horvitz. “This is good news for the European states and for the economies of the region,” he said.
The price of gas affects electricity, as many European power plants burn gas to generate electricity. In France, the price of wholesale electricity for delivery in 2023, which had exceeded 1,000 euros/MWh at the end of August, fell this Friday to 240 euros, the lowest since April. But these changes in wholesale prices are not reflected directly in the prices charged to consumers, as electricity providers soften their rates, especially during this period when prices can jump from one day to the next.
Source: BFM TV
