The price of gas in Europe fell below $650 per 1,000 cubic meters on Monday for the first time since the beginning of September 2021, according to London’s ICE.
The price of February futures at the TTF hub in the Netherlands fell to $645 per 1,000 cubic meters or 57.635 euro per MWh (based on the current euro/dollar exchange rate, ICE prices are presented in euro per MWh).
Gas prices are falling against a backdrop of rather warm weather in Europe. Since the beginning of the month, the average percentage of wind power in EU electricity generation has been quite high, reaching 26%. On January 15, it even set a new record at 35.4%.
Moreover, gas reserves in EU underground storage facilities have reached an all-time high for this time of year. Now, UGS facilities in Europe are loaded to 81.7% (19 percentage points higher than the 5-year average), with 88.47 bln cubic meters of gas. Gazprom cautioned, however, that even close to maximum gas stocks at UGS facilities in large European countries do not ensure a reliable passage through the fall-winter period. Because of changes in logistics and gas supply sources, the winter demand on UGS facilities in Europe will be greater than in prior years.