European market gas price falls below 30 euros per MWh for first time since June 2021

The wholesale gas price for the European market yesterday fell below 30 euros (around CZK 712) per megawatt-hour (MWh) for the first time since June 2021. High storage levels and rising temperatures, which are reducing demand, are pushing it down, AFP reports.

Since the beginning of this year, the gas price for the European market has fallen by more than 60 percent, but it remains high compared with previous years. In 2020, it stood at around 15 euros per MWh, AFP noted.

„The combination of a mild winter, record LNG (liquefied natural gas) imports from the US and limited demand from households and businesses has pushed European gas prices down,“ Biraj Borkhataria, an analyst at RBC Capital Markets, told AFP.

The price of the key June-delivery gas futures contract at the Title Transfer Facility (TTF), a virtual trading hub in the Netherlands, fell as low as 29.69 euros per MWh today. It later recouped some of its losses, closing trading down around five percent at 30.3 euros per MWh.