On December 29 local time, the Dutch TTF natural gas futures price fell by 0.04% to 83.8 euros/MWh. Thanks to mild weather and high inventory levels, European natural gas prices once fell to 77 euros per megawatt hour on December 27, the price level before the Russian-Ukrainian conflict broke out.
Faced with falling natural gas prices, senior energy analyst Livia Gallarati warned that “very tough conditions remain”. She said that although the price of 83 euros per megawatt hour in Europe is slightly lower now, cold weather cannot be ruled out in the next few months. And Europe will need Russian gas to balance next winter, and supplies will be much smaller than before. “So in the long run, all of this could mean that we’re still in a very tough situation,” Livia said.
In August, European gas prices rose to a record level of 345 euros per megawatt-hour. On December 19, local time, EU countries reached an agreement to limit the price of natural gas at 180 euros per megawatt-hour. The price limit mechanism will start on February 15, 2023. However, after entering the winter, Europe has ushered in mild weather instead, which not only reduces heating demand, but also helps European natural gas inventories remain at a higher level than the average level of previous years.
Not too cold this winter? European gas prices fell again. Click on the video to see it!