The price of gas on the European market fell for the eighth consecutive day today. On the Dutch TTF gas futures market, a benchmark for European prices, the price of gas fell below the €80 per megawatt hour mark, bringing wholesale prices back down to levels seen before Russia’s invasion of Ukraine.
According to analysts, this decline can be explained by mild temperatures and a rise in the use of wind energy to electricity, which helps lower demand for gas. Europe also currently possesses large reserves of gas in underground storage.
Credit: ICE
Last week, European energy ministers announced that a cap on natural gas prices could take effect from mid-February 2023. The Kremlin is opposed to the measures, threatening to cut supply of oil to nations that enforce a market cap Russian crude imports. In August, natural gas cost €345 per MWh on the wholesale market, an all time record.
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Today, gas prices are hovering at around €77 per MWh, the lowest level since Russia invaded Ukraine in late February.
