Benchmark natural gas prices in Europe continued to fall on Thursday to the lowest level in the last two years, as a weak situation in the regional economy affects the outlook for gas demand, according to Bloomberg, taken by Agerpres.

Next-month gas futures were down 3.2 percent at 26.90 euros per megawatt-hour at around 9:51 a.m. at the gas hub in Amsterdam, where benchmark prices for Europe are set, after in the previous three sessions they registered a cumulative decrease of almost 8%.

Statistics released on Thursday showed Germany slipped into recession in the first quarter of this year, underscoring the continent’s struggle to emerge from a crisis that was partly caused by record energy costs last year.

Demand for gas in Europe’s industrial sector is modest, despite the recent fall in prices, which has led to an oversupply in the market.

The fact that reservoir fill rates are higher than normal for this time of year, as well as the abundance of available liquefied natural gas, further reduce the risks to next winter’s gas supply.

On the other hand, a 60% drop in gas prices this year has provided a breath of fresh air to Europeans suffering from progressive inflation.

In addition, current prices are not encouraging gas purchases by China, where a modest economic recovery is undermining demand for the fuel. The most important Chinese importers of liquefied natural gas are simply not present in the spot market and are even offering to sell a certain amount of liquefied natural gas, said traders consulted by Bloomberg.

Even if some small buyers in Europe are starting to take advantage of low gas prices, this is not enough to counter the overall downward trend in prices. (article photo: DreamsTime.com)