2023-07-16 19:03:40
The impact of inflation has been observed in various areas, starting with energy. On average, a French household consumes nearly 11,187 kWh per year, which represents more than 1,234 euros, according to Engie pricing. At this time of year, gas prices have just experienced a significant decline.
Fall in gas prices in several regions of Europe
While heat waves are expected in several Mediterranean countries, like Italy, gas prices have just experienced a weekly drop. Indeed, the week ended with a drop of 2.4% on Dutch futures, which resulted in a total drop of 22% during the week.
This is the largest weekly pullback seen since December 2022, according to Bloomberg. Currently, southern Europe as well as parts of Germany are experiencing soaring temperatures. A situation which prompted Electricité de France (SA) to reduce the production of one of its nuclear reactors, since the heat is responsible for the reduction in the quantities of water poured into the Rhône. Likewise, this situation could lead to increased demands for other sources of energy production.
On the other hand, Norway, which is Europe’s largest gas supplier, intends to resume supplies soon. Indeed, the reopening of the Nyhamna gas plant is scheduled for July 15. Thus, the Troll deposit would regain its pre-seasonal work amplitude.
The impact of falling gas prices on France
According to figures from Gas Infrastructure Europe, gas stocks are 80% full. A record that has not been achieved for many years at this time. Last year, this same rate was 62%, against 50% two years ago. According to the seasonal projections of the Copernicus Climate Change ServiceEurope is expected to experience periods of intense heat in the coming months.
On the other hand, the demand for gas in the industrial sector is also falling and has experienced a decline of 25%. To conclude, according to Morgan Stanley’s forecasts, the price of gas should fall to 15 euros in the event of a mild winter. A price lower than 40% of the current price, which could positively impact the purchasing power of the French, which experienced, in 2022, a drop of 37%.
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