The price of natural gas fell Wednesday to a new low since the outbreak of the war in Ukraine, helped in particular by mild winter temperatures in Europe and “record” imports of liquid natural gas.
Shortly before 11 a.m., the Dutch TTF tariff, the benchmark for the European natural gas market, was trading at 69.15 euros per megawatt hour (MWh) after falling to 66.9 euros in the morning. Over one month, the drop reached 48.4% and over one year 24%.
The price of Dutch TTF thus reached a new low since mid-February and the start of the war in Ukraine. If the price has moved considerably away from the historic peak at the end of August at 341 euros, it nevertheless remains clearly higher than the 17.56 euros at which it was trading at the start of January 2021.
Analysts from Trading Economics explain the continuous decline of the Dutch TTF since last summer by mild weather which reassured investors on the level of gas stocks. While temperatures are expected to remain mild in Europe for the next two weeks, the Old Continent is also benefiting from ‘record’ imports of liquid natural gas (LNG) and an increase in wind electricity production in France and Germany. .
/ATS