Gas prices in Europe drop by almost 10%

Exchange prices for gas in Europe fell by almost 10% to $670 per thousand cubic meters at the opening of trading on Tuesday, reported from the data from London's ICE.

February futures on the TTF index (the largest hub in Europe, located in the Netherlands) opened trading at $672 (-9.7%). The dynamics of quotations is based on the settlement price of the previous trading day - $743.8 per thousand cubic meters.

Exchange gas prices in Europe on January 17 for the first time in 16 months - from August 31, 2021 - fell below $600 per thousand cubic meters. Experts noted that the price of gas on the European stock exchange is declining due to warm weather and strong winds (wind farms have increased electricity generation), as well as sufficient gas reserves in underground gas storage facilities in the EU.

Despite the current decline, gas prices are more than double the average for a long history of observations. Such persistently high prices have not been seen in the entire history of the operation of gas hubs in Europe - since 1996.

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