Gas prices on the European market continue to fall to a new two-year low

Wholesale gas prices on the European market continue to fall to new two-year lows, which could bring relief to consumers and businesses that paid high energy bills last year. The price of the key gas futures contract for delivery next month fell as low as 24.9 euros (roughly CZK 590) per megawatt-hour (MWh) this morning at the virtual trading hub Title Transfer Facility (TTF) in the Netherlands. This is the lowest level since 27 May 2021, Reuters reported.

Last August, wholesale gas prices on the European market surged to nearly 350 euros per MWh due to cuts in supplies from Russia. This year, European wholesale gas prices have fallen thanks to a milder-than-usual winter, measures to reduce gas consumption, and solid stocks and supplies. EU storage facilities are now around 66 percent full.

According to ANZ analysts, Europe managed to avoid a serious gas shortage thanks to mild temperatures and sufficient supplies of liquefied natural gas. European gas consumption between August 2022 and March 2023 was 17 percent lower than the average for the same period in the previous five years, they said.