For the first time in 17 months futures contracts natural gas retreated to Europe at levels below 50 euros and, in particular, fell yesterday by 6.2%, to 48.78 euros per megawatt-hour, recording the lowest level since August 31, 2021. In addition, forward contracts liquefied natural gas (LNG) on Thursday they fell to $15.25 per million British thermal units, the lowest level since Dec. 5. As market participants note, events tend to reduce the escalation of the historic energy crisis, but there is currently no further decline in energy prices.

Gas prices have already fallen by 35% since the beginning of the year, although they remain about twice the normal level for this time of year. After all, they fell by more than 80% compared with the August record, when Russia cut off fuel supplies to Europe. Then Heria Epirus was saddled with a cost of approximately one trillion. dollar, its economy suffered, and inflation skyrocketed to multi-year highs. Europe is now recovering thanks to a relatively mild winter, the efforts of governments, industry and society to reduce energy consumption, as well as extensive LNG imports, mainly from the US and Qatar.

Gas prices have fallen by more than 80% from their record high in August.

After all, the current high levels of stock they are growing and the sense of optimism that the Old Continent can do so both this and next winter offer a protective cushion in Europe. Since there is no Russian gas on the market, European countries seem to have adapted enough and provided themselves with several alternatives. German energy company Uniper, which needed the help of the German state last year when the energy crisis brought it to its knees, said yesterday that it would solve its problems by 2024 at the latest. problems of a sharp rise in energy prices caused by interruptions in the supply of Russian gas, problems that cannot be ruled out in the event of a new rise in energy prices. The recent price cut helped it limit its losses, which, however, reached 10.9 billion euros for 2022.

However, market analysts doubt that the price decline will continue. Winter is coming to an end and heating demand is declining, and falling prices are making gas more affordable for electricity generation in Europe than alternatives available on the Old Continent, such as coal. At the same time, demand is growing from energy-intensive economies in Asia, India and China. Fuel prices could also rise if the winter turns out to be longer or harsher, or if some unforeseen factors lead to supply disruptions. According to Steve Hill, executive vice president of marketing at Shell Plc, “We are approaching a point where the possibility of price declines is likely to be limited while there is a possibility of price increases, especially with strong growth in China.”