Gas prices at their lowest in nearly two years

2023-05-05T17:24:42.879Z

Highlights: Gas prices continued to fall on Friday, May 5, reaching a low in nearly two years due to high storage levels and the arrival of milder temperatures. The Dutch FTT futures contract, considered the European benchmark, fell on Friday 5 May to 35.125 euros per megawatt hour (MWh), a new low since July 2021. European natural gas has fallen by more than 52%, far from its all-time high reached in March 2022 at 345 euros per MWh, at the beginning of the war in Ukraine.

Gas prices continued to fall on Friday, May 5, reaching a low in nearly two years due to high storage levels and the arrival of milder temperatures. According to the Agency...

Gas prices at their lowest in nearly two years

The price of gas was this Friday, May 5, 2023 at the lowest in nearly two years. (Illustrative image). AFP - ERIC PIERMONT

Text by: RFI Follow

2 min

Gas prices continued to fall on Friday, May 5, reaching a low in nearly two years due to high storage levels and the arrival of milder temperatures. According to the International Energy Agency, Europe should not run out of gas this winter.

Advertising

The Dutch FTT futures contract, considered the European benchmark, fell on Friday 5 May to 35.125 euros per megawatt hour (MWh), a new low since July 2021.

Since the beginning of the year, European natural gas has fallen by more than 52%, far from its all-time high reached in March 2022 at 345 euros per MWh, at the beginning of the war in Ukraine, but still at high levels, compared to previous years. In 2020, gas fluctuated around 15 euros per MWh.

Europe should not run out of gas this winter

Europe should not run out of gas next winter, according to the International Energy Agency in its new report. The institution is changing its mind, because in its previous study, it said precisely the opposite. However, the France is singled out. The country could be penalized by strikes against the pension reform, strikes that have affected the main LNG terminals.

In 2022, high gas prices limited its use in industry, and mild weather combined with energy-saving measures reduced demand.

As a result, underground gas tanks in the EU are currently 60% full, up from 35% a year ago.

After the invasion of Ukraine, Russian gas exports to the European Union dropped drastically. Moscow responded by reducing the flow of gas and then turning off the tap permanently. This triggered a global gas supply crisis. A crisis to which the European Union has resisted better than expected.

The France is an exception

However, France is an exception. Disrupted by strikes, shipments of liquefied natural gas to terminals fell by 23% in the first quarter, and even by half in March alone. As a result, France had to draw on its stocks and now finds itself with the lowest reserves in the EU.

Finally, in 2023, gas demand is expected to remain stable, while its prices continue to fall.

Gas prices at their lowest in nearly two years

Gas prices at their lowest in nearly two years

Europe should not run out of gas this winter

The France is an exception

You may like

Trends 24h

Latest