“Natural Gas Futures Prices in Europe Fall Below €30 for First Time Since June 2021, But Economic Uncertainty Lingers”

The prices of natural gas futures contracts in Europe fell during trading today, Thursday, to less than 30 euros per megawatt-hour for the first time since June 2021, in a continuation of the return of stability to the market after the severe chaos it was exposed to in the past year.

Bloomberg News Agency indicated that European countries have succeeded in storing large quantities of natural gas during the recent period thanks to the relatively mild weather during the winter season, in addition to the expansion in the import of liquefied natural gas, and the decline in consumption as a result of prices reaching record levels in the winter.

At the same time, weak demand continued despite the decline in prices due to the uncertainty surrounding the economy.

Futures prices are now less than 10% off the record highs set after Russia’s invasion of Ukraine in late February last year and the massive cut in Russian gas supplies to Europe, when prices exceeded €400 per MWh.

Meanwhile, prices are close to their averages over the past five years, although many consumers are still affected by last year’s market shocks.

Economic recovery in Europe is still volatile and some gas consumers are still committed to the supply contracts they signed during the price hike, which means that the decline in the value of electricity consumption bills on the continent may be delayed despite the decline in gas futures prices.

Dealers are also anticipating the potential increase in demand for electricity during the hot summer months.