Gas prices in Europe fall

March futures for gas in Europe fluctuate within $923-$943 per 1,000 cubic meters, slightly declining to the settlement price of February 14, reported from the data of the London Stock Exchange ICE.

A tangible increase in gas prices in Europe began in the spring of 2021, when the average spot price on the TTF hub index fluctuated within $250-$300 per 1,000 cubic meters.

At the end of the summer, the value of a day-ahead delivery contract exceeded $600, and in early October it was already $1,000. The futures market reached an all-time high $2,190 on December 21. Then the prices declined, but in general, there have been no such persistently high prices in the entire history of the operation of gas hubs in Europe - since 1996.

Experts attribute the rise in prices to several factors including the strong demand for liquefied natural gas (LNG) in Asia, limited offer from major suppliers, and low levels of occupancy of European underground storage facilities after a long cold winter and hot summer in 2021.

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