Gas price in Europe drops to lowest level in almost 18 months
Market convinced that Europe will be able to survive this winter and the next
European natural gas fell to its lowest price in almost a year and a half on Friday, hitting 49.50 euros per megawatt-hour, the first drop below 50 euros since August 2021.
Source: CNBC
Details. Significant gas stocks in storage and mild winter weather helped to reduce prices, which reached a record high of almost 340 euros per megawatt-hour in September.
The European benchmark TTF fell by almost 5% to 49 euros per megawatt hour during the day, reflecting market optimism that European countries will survive the winter of this year and next year without facing shortages.
Before that, the main reason for the rise in gas prices was the fear of a hard winter after the suspension of supplies from Russia.
Background. Experts estimate that if Gazprom loses the European market, it could lose half of its export revenue.
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