Natural Gas in Europe Declines Significantly

European gas prices have fallen to their lowest level since the start of the energy crisis, amid expectations of a new breakthrough.

According to the Financial Times, TTF, the European price benchmark, hit a low of 35.20 euros ($39.46) per megawatt hour, while the index later rose slightly to end the week at 35.95 euros, equivalent to approximately $40.30.

Oil prices also fell, with Brent crude falling to nearly $75 a barrel after trading above $100 a barrel for much of last year, slumping to nearly the level it traded before the Russian-Ukrainian War.

However, gas prices remain high compared to historical levels, in 2019 prices averaged less than 15 euros, while pre-crisis peaks reached 29.17 euros in 2018, adjusted for inflation still slightly lower in terms of trading prices today.

The International Energy Agency (IEA), in its last quarterly report on the gas market, explained that the global gas supply and demand balance is “unusually subject to a wide range of uncertainties”