Energy prices
The price of natural gas has fallen to the level of August 2021, even before the Russian invasion of Ukraine and the energy crisis that followed.
The price of natural gas has fallen to the level of August 2021, more specifically to the level before the Russian invasion of Ukraine and the energy crisis that followed.
The price to supply natural gas next year – 2025 – has fallen to 28.45 euros for a megawatt hour. That is the lowest level since August 2021. The ‘cal2025’ is today the reference contract on the natural gas market.
The price of natural gas peaked in the fall of 2022, when Europe had to wean itself from Russian pipeline gas in the wake of Russia’s invasion of Ukraine. Afterwards, gas prices started to drop.
Gas supplies appeared to be sufficiently replenished, there is sufficient supply of liquefied natural gas (LNG) and there is also less demand for natural gas, due to an ailing industry, mild temperatures and an ever-increasing supply of renewable energy.
With the price at its lowest level since 2021, “the energy crisis has in fact been consumed,” says Matthias Det emmerie, trader at energy supplier Elindus.
Vulnerable
Yet specialists point out that Europe remains very vulnerable to supply shocks, for example if demand were to suddenly increase due to an industrial recovery. (blg)
