The TTF futures contract for Dutch natural gas fell to 76.18 euros per megawatt hour. European natural gas was last cheap in February. The record of 345 euros per megawatt-hour was reached in the summer.
Further easing in the gas market: The price of European natural gas continued its downward trend from recent trading days. On Wednesday, the TTF futures contract for Dutch natural gas fell to 76.18 euros per megawatt-hour. European natural gas was last cheap in February, before the outbreak of war in Ukraine. The price of gas has been falling for eight consecutive days.
Since mid-December, the TTF futures contract has fallen by around EUR 60 per megawatt-hour. The listing reached a summer record of 345 euros per megawatt-hour. At that time, an interruption in the supply of natural gas from Russia caused a rapid increase in the price of natural gas.
Mild temperatures keep consumption low
The main reason for the drop in gas prices is the mild temperatures, which keep natural gas consumption comparatively low. More recently, temperatures have been significantly higher than in the middle of the month, when permafrost was present in large parts of Germany. In addition, significantly more energy has recently been generated from wind energy, which decreases the consumption of gas to generate electricity.
Thanks to the currently comparatively favorable climate, natural gas is being stored again in Germany. According to the latest data from the European storage association GIE, the filling level in all German storage systems was 218.1 terawatt hours on Monday, which corresponds to 88.62% of the maximum value. It was therefore an increase of 0.41 percentage points from the previous day and the sixth consecutive increase.
Despite the recent easing, the European natural gas price is still at a comparatively high level. In 2020, the TTF futures contract was still below the 20 euro mark.
(APA)