The price of European natural gas fell sharply on Monday to the lowest level since June. The price of the TTF futures contract for Dutch natural gas fell by more than 13 percent in the morning to 100 euros per megawatt hour. The TTF contract serves as a guideline for the European price level. The market referred to relatively mild temperatures and attempts to curb gas prices.
After the gas price initially fell to 100 euros in early trading, it traded slightly higher in the early morning at 104 euros per megawatt hour. Until now, Europe has had relatively mild temperatures for the time of year. In Germany, the gas storage facilities could be filled faster than planned and the filling level of the storage facilities is already well above 95 percent. In addition, the prospect of the start of liquefied gas deliveries has tempered concerns about insufficient supplies in the winter months, the market said.
Stop deliveries from Russia catapulted gas price up
In addition, the EU countries are working on measures to limit the price of gas. Mandatory joint gas purchases and a kind of price cap for the European gas exchange TTF are part of a package of measures recently proposed by the European Commission. The European gas price has shown a downward trend since the end of August after a record high of 342 euros per megawatt hour. A cessation of the supply of natural gas from Russia caused a rapid increase in the price of natural gas at that time.
Despite the recent easing, the price of European natural gas is still at a relatively high level. In 2020, the TTF futures contract was still below 20 euros.
Source: Krone
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