Home » The price of gas in Europe returns to pre-crisis levels

The price of gas in Europe returns to pre-crisis levels

by admin
The price of gas in Europe returns to pre-crisis levels

Listen to the audio version of the article

The price of gas in Europe returns to pre-crisis levels, falling below 23 euros per Megawatt hour. And it just so happens that this happens exactly two years after the start of the war in Ukraine. A coincidence of high symbolic value, but a coincidence nonetheless.

Gas at pre-crisis levels, however, does not mean at the lowest levels for two years: since May 2021 the fuel has not traded at these levels at the TTF, the Dutch hub that acts as a reference for the Old Continent. So almost three years ago. Moscow’s troops violated the Ukrainian borders only on February 24, 2022, but tensions on the market had already begun some time ago, triggered by apprehension over the too low level to which stocks had fallen and by the first tightening by Gazprom, which had stopped offering additional volumes compared to those guaranteed by the contracts.

The rally culminated in summer 2022

After the invasion of Ukraine there was an acceleration of the rise in energy prices, which became increasingly unleashed with the “cuts” to Russian supplies. The gas rally culminated during the summer of 2022, when prices even exceeded 340 euros per Megawatt hour: a dizzying surge, fueled by the European governments themselves, who unleashed a real assault on supplies in order to fill the gas depots storage in view of the cold season.

Probably inevitable purchases, in defense of energy security, even if today a very high bill remains to be paid, which will end up being borne by consumers through increases in bills or through general taxation. Germany and Italy, which were once Gazprom’s largest customers, estimated a capital loss of 10 billion and 4.8 billion euros respectively for that assault on stocks.

See also  Banks, 300 million fund launched: a parachute for small ones

Never left out in the cold

The crisis triggered by the gas price increases has weighed heavily and continues to weigh on the European economy. But the most feared emergency never happened: we were never left in the cold or in the dark, nor last winter, when the hypothesis of a blackout was truly realistic, nor this winter, during which prices of gas have never stopped falling: they actually more than halved during the heating season, dropping to a minimum of 22.355 euros/MWh in the session on Friday 23rd at Ice.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy