The closer to spring, the lower the price of gas on international exchanges is getting lower, falling below 25 euros/MWh on Tuesday. Practically, it reached the level of the summer of 2021, when the consequences of Moscow’s manipulation of the European market, which led to the launch of the energy crisis, had not yet been felt. The Romanian market reacts more sharply, the price is still above 25 EUR/MWh.
The price of gas will be lower and lower
Prices on the TTF exchange in Amsterdam, a representative of the European market, have been steadily declining, reaching on Thursday the level of 24.8 euros/MWh for the next month.
At the moment, compared to record levels during the energy crisis, the price of European gas has ended up being more than 90% lower.
A further decrease is expected, with the possibility that in the warmer months it will even reach a level of around €15 / MWh, as in 2020, especially given the large supply.
In Romania, several transactions on the BRM spot market are still slightly higher than on the TTF, with a weighted average price slightly above 25 EUR/MWh. This winter, Romanian spot market prices were many times higher than Amsterdam prices by 2-3 EUR/MWh.
But despite this, they were below the €30/MWh limit set for producers by GEO 27/2022 regarding the energy price capping and compensation scheme. Two weeks ago, the Ministry of Energy told HotNews.ro that it will change GEO 27/2022 so that prices take into account trends in the stock market.
With gas-filled warehouses, on the threshold of spring
The lower gas price is affected by a large supply amid the import of liquefied gas and the fact that gas storages are still full ahead of spring.
At the EU level, warehouses are 66.22% full. In Romania, we have 59.77% warehouse occupancy.
As spring approaches, operators are trying to sell as quickly and as much of the stored gas as possible, given that storage involves additional costs.
Read also: Government failure to manage gas and electricity prices: Caps are too high and no longer justified, but lifting them could create even more chaos in the energy market
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.