The price of European natural gas fell to its lowest level in more than six months on Monday. On Monday, the landmark futures contract TTF for delivery in one month on the Amsterdam stock exchange slipped below 26 euros per megawatt hour (MWh). In the morning the contract temporarily cost 25.82 euros, making it cheaper than it has been since last July.
The start of the war in the Middle East caused the price to temporarily rise above 50 euros last October, but then a trend reversal began in November. Since the beginning of the year, the price of the raw material has fallen by around 20 percent. On the market, the price decline is explained, among other things, by the rather weak economy in the European Union. This is slowing down demand for gas, including in Germany.
Saved a lot of gas
According to the latest information from the Federal Network Agency in January, Germany saved a lot of gas at the end of 2023. Accordingly, gas consumption in industry in the months October to December was 16 percent below the average consumption from 2018 to 2021. Consumption by households and businesses was 16.7 percent lower. The Federal Network Agency refers to the temperatures: In 2023, these were above the average for the years 2018 to 2022, which had a “major influence on gas consumption”.
The overall level of natural gas storage facilities in Germany has fallen continuously since the beginning of the year. However, it is still comparatively high for the time of year. As of February 10, the overall level was 72.59 percent, according to recent data from the European gas storage association GIE.
Even attacks in the Red Sea did not affect the price
The recent attacks by Houthi rebels on important shipping routes in the Red Sea have not been able to give the gas price a major boost. Raw materials experts assume that this will not affect supplies in Europe.
The current price level is also well below the highs reached during the Russian war against Ukraine. Over the course of 2022, more than 300 euros per megawatt hour were temporarily due after Russia severely cut back on its gas deliveries to Europe.