Gas prices decline to lowest level since December '21

- Mild weather in winter, high gas inventory levels and low demand pushed prices lower

The price of natural gas in Europe fell to its lowest level since December 2021, below €35 per megawatt-hour, the latest market data showed on Monday.

Low demand and a high occupancy rate of European natural gas storage facilities were major factors in such low prices, with prices continuing to fall due to mild winter weather.

The gas contract price for June on the Netherlands-based virtual natural gas trading venue, TTF, closed Friday, May 13, at €32.7 per megawatt-hour.

As of 3.10 p.m. CET (1210 GMT), the price of natural gas was €32 per megawatt-hour, 2.14% lower than the previous closing price.

When economies began to recover after the pandemic last summer, the energy crisis caused by the supply-demand imbalance was deepened by supply concerns following the breakout of the Russia-Ukraine War.

Prices were €33.1 per megawatt-hour on Dec. 16, 2021, but the Russia-Ukrainian war pushed prices to the highest level of €300 per megawatt-hour in August 2022.

Writing by Nuran Erkul Kaya in London

Reporting by Basak Erkalan

Anadolu Agency

energy@aa.com.tr