The price of European natural gas fell below $24/MWh for the first time in two years in Dutch TTF futures trading, continuing a downward trend of recent months. The benchmark contract for July delivery traded at EUR 23.50 per MWh, its lowest level since May 2021, thanks in part to the impact of record solar power generation in Germany. The price of gas then closed at 25 euros. Since the beginning of the year, quotations have recorded an overall decrease of 67%.
The downward trend has continued since late last year, after a sharp rise following the Russian invasion of Ukraine. At its peak, the price surpassed €340 per MWh in August 2022, amid fears of a European energy crisis after Russia ceased supplies.
Storage levels
Among the reasons for the defense of prices, the European reserves remained abundant after the winter. Gas storage levels stood at 74.11% of capacity in Europe’s largest economy, Germany, according to data from gas storage association Gas Infrastructure Europe (GIE). Levels have risen steadily in recent weeks and are well above last year’s levels. Storage in Italy is also at a level never reached before, around 66% of capacity.