European Natural Gas Prices Fall... Back to Pre-Ukraine War Levels

[Asia Economy Reporter Kwon Haeyoung] European natural gas prices have continued to decline recently due to mild weather, Bloomberg reported on the 27th (local time).

On this day, the January delivery gas trading price on the Netherlands TTF gas futures market closed at 80.04 euros per MWh, down 3.6%. This is the lowest level since February 22, two days before Russia invaded Ukraine (79.94 euros). It has fallen 77% compared to the peak price of 346 euros recorded in August.

The continued decline in European natural gas prices is due to temperatures across northwestern Europe exceeding average levels despite entering midwinter, reducing concerns about supply shortages. Gas storage levels in Europe have also maintained an appropriate level, rising from 82.9% to 83.1%.

However, it is pointed out that it is still difficult to consider the situation normalized since gas prices were already elevated before the outbreak of the Ukraine war.

Bloomberg reported, "As a fierce cold wave hits the United States, Europe's largest supplier, market participants are closely monitoring the possibility of disruptions in LNG supply from the U.S."

This content was produced with the assistance of AI translation services.