The wholesale price of natural gas fell below 100 euros per megawatt-hour during Monday. This is the first time this has happened since June this year and gas is already a quarter cheaper than on 24 February, when Russian troops invaded Ukraine. This is according to data from the virtual trading hub TTF in the Netherlands.
Gas has become more than 70% cheaper in two months
Two months ago, a megawatt-hour of natural gas was trading at around €350 on the exchange. A month ago, the same volume of gas cost around EUR 200 and at the beginning of the last week of October the price fell below the EUR 100 mark. In two months, gas has thus become cheaper by more than 70 percent.
Demand not so high due to warm weather
The decline in natural gas is due to both demand and supply side factors. Demand is currently lower than expected due to warmer than usual weather in Europe at this time. At the same time, Europe has managed to fill its gas storage capacity solidly and can therefore be said to have a relative abundance of natural gas.
Nevertheless, the price of a megawatt hour of natural gas on the European wholesale market is about 2.5 times higher than a year ago. Gas can also be expected to become more expensive in the coming weeks as winter approaches and it gets colder.
