European gas prices fall to 30 euros per MWh, lowest in a month

The wholesale price of gas for the European market fell to a one-month low, trading near 30 euros per megawatt-hour (MWh) on Tuesday morning. The price is being pushed down by forecasts of warmer weather and stable supplies, Reuters reported.

At around 11:00 CET, the key next-month gas futures contract at the Title Transfer Facility (TTF), a virtual trading hub in the Netherlands, was down by about five percent and trading below 31 euros per MWh. In January, it rose above 40 euros per MWh due to cold weather.

Wind power generation in Germany is expected to reach above-average levels next week, which could reduce demand for gas. Supplies of the commodity from Norway remain stable, while liquefied natural gas (LNG) supplies are expected to increase.

Analysts at Energy Aspects nevertheless expect Europe’s gas stocks to end the winter season at a seven-year low. Replenishing them ahead of the next winter season will therefore require larger supplies than in previous years.

On Saturday, gas storage facilities in the European Union were just under 34 percent full, according to data from Gas Infrastructure Europe (GIE). In the Czech Republic, they were around 37.5 percent full.