The European natural gas price fell to its lowest level since August 2021 on Thursday, before rising by almost 15 percent. This means that the lower limit of the gas price seems to be in sight, according to the gas market.
On the leading Dutch futures market TTF, the gas price for delivery next Thursday fell to 40 euros per megawatt hour. That is the lowest level since the beginning of the energy crisis and 88 percent below the peak price that was reached after the Russian invasion of Ukraine (345 euros per megawatt hour).
In the afternoon, however, a price increase of almost 15 percent followed. It is the first time in months that such a rise has occurred, notes Matthias Detremmerie, trader in natural gas with supplier Elindus.
The market is pointing to the strikes in France, resulting in blockages of LNG terminals. This means that more is being used than expected from the accumulated gas reserves. Bargain hunters may also have been active on the gas market.
With that 40 euros per megawatt hour, the lower limit also appears to be in sight in the short term, the trader expects. Traders will also look again in the coming months to stock up on sufficient LNG (liquefied natural gas) for the next winter period.
Detremmerie therefore does not expect gas prices to return to pre-energy crisis levels for the foreseeable future. After all, the demand for gas will rise again to fill the stocks, and sooner or later the demand for LNG will also pick up from China.
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