Gas prices in Europe dipped on Monday, despite winter pressures and Red Sea tensions.
For the first time since August, the price per megawatt-hour fell below the €30 threshold. On the primary Dutch futures market, it plunged over 7% on Monday, settling at about €29.8 per megawatt-hour after midday. However, this was twice as high as before the energy crisis and Russia’s invasion of Ukraine.
The decrease in prices has occurred in spite of escalating tensions in the Red Sea, where oil tankers and container ships have been targeted by Yemen's Houthi rebels.
Qatar, a significant gas producer, now appears to be avoiding this crucial sea route. Maritime transport datareveals that at least five tankers that carry liquefied natural gas (LNG) from Qatar through the Red Sea route havestopped doing so since Friday.
Qatar is Europe’s second-largest LNG supplier after the United States, typically using the route via the Suez Canal for its deliveries. Despite these obstacles, abundant gas reserves in Europe and a significant LNG supply have kept gas prices falling.
Additionally, demand in industry is lower due to economic weakness.
