Reference prices for natural gas in Europe fell on Monday to the lowest level since September 2021, Bloomberg reported, citing Agerpres.

Natural gas futures fell 15% on Monday, bringing their year-to-date decline to 27%.

Chinese importers are scrambling to divert shipments scheduled for February and March to Europe amid low prices and large inventories in the Chinese market. The news calmed concerns that China’s economic recovery would boost demand for gas, so LNG-laden ships would be diverted from the West to China.

At the TTF gas hub in Amsterdam, where European benchmark prices are set, gas futures were down 14% at 55.48 euros per megawatt around 3:49 p.m. after falling for five straight weeks.

A prolonged period of high temperatures was one of the main reasons for this decline.

Even if a sharp cold snap is forecast for Europe this week, it is likely to be short-lived and not strong enough to reduce gas supplies, which have been largely unused over the past month as demand has been kept in check and liquefied natural gas imports flat. high level.

On the other hand, in Romania, according to meteorologists, temperatures will stay above 20 degrees Celsius this Wednesday and Thursday.

Optimism about natural gas prices in Europe

“So far, there is no end in sight to the fall in the European gas market. The panic situation of last year has been replaced by the confidence that Europe will survive the winter without supply problems,” analysts of trading company Energi Danmark A/S note.

However, there are some worrying signs that the crisis triggered by a significant cut in Russian natural gas supplies to Europe is far from over.

Europe was “lucky” that the weather was on its side, but its stocks remain vulnerable to geopolitical events, Iberdrola SA President Ignacio Sanchez Galan warned.

Although gas prices have eased, they are still above the multi-year average for this time of year.

However, at the moment, the European natural gas market is also getting a helping hand from renewable energy sources. Thanks to electricity generated from renewable sources, Europe uses less natural gas to generate electricity.

Official data show that on Saturday wind turbines in Germany produced a record amount of electricity, a similar situation was registered in Great Britain.