The Marlin Luanda oil tanker burns in the Gulf of Aden, Yemen, after being hit by an anti-ship missile fired from a Houthi-controlled area in Yemen. picture alliance / ZUMAPRESS.com | Indian Navy
The price shock on the European gas market has subsided for the time being. Even conflicts like the one with the Houthis in the Red Sea temporarily have no impact on the price of gas. This development can be attributed primarily to two main factors.
Relatively cheap gas due to weaker demand
On Monday, the price of natural gas in Europe reached its lowest level in over six months. The relevant TTF futures contract, which trades for one-month delivery on the Amsterdam stock exchange, fell below 26 euros per megawatt hour to 25.82 euros, the cheapest level since July 2023.
According to current data from the Federal Network Agency, Germany saved significant amounts of gas at the end of 2023, with consumption in industry, households and businesses being 16 percent and 16.7 percent below the average for the years 2018 to 2021. This is partly attributed to milder temperatures affecting consumption.
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Although natural gas storage facilities in Germany have steadily declined since the beginning of the year, they are comparatively well filled for this time of year, with the overall level on Saturday at 72.59 percent, data from the European gas storage association GIE shows.
Houthi attacks in the Red Sea have no significant impact on gas prices
In October, the war in the Middle East drove the price to over 50 euros, but since November a trend reversal began. Since the beginning of the year, the price has fallen by around 20 percent, with the rather weak economy in the EU being seen as one reason for the decline, which is also affecting gas demand in Germany.
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The recent attacks by Houthi rebels on ships in the Red Sea also had no significant impact on the price of gas. Experts assume that this will not endanger gas supplies in Europe.
The price level is also well below the highs reached during the Russian-Ukrainian conflict. During 2022, prices temporarily rose to over 300 euros per megawatt hour as Russia drastically reduced its gas deliveries to Europe.
AA/dpa