Gas prices in Europe have fallen to a 17-month low

Gas prices in Europe fell below €50 per megawatt-hour (about $550 per thousand cubic meters). This is the lowest price in the last 17 months.

Bloomberg writes about it.

Compared to the summer of 2022, when prices broke records, the cost of gas fell by almost 80%. The rise in prices began due to the fact that Russia was cutting gas supplies to Europe.

According to analysts, this shows that the worst energy crisis in Europe is receding, but they consider a further decrease in prices unlikely. With the end of winter and the heating period, the demand for gas will increase, because it will be a more economical source of energy.

Demand is also growing in other countries, from India to China. Prices may also increase if cold weather continues through the end of winter or supply disruptions occur.

• In September, Russian Gazprom informed about the suspension of gas supplies through the Nord Stream pipeline, which is the main gas pipeline for supplies to the EU. Due to this, gas prices in the EU have increased significantly. Later, supplies were restored, but Russia significantly reduced supplies to Europe, in particular, completely stopped doing it through Ukraine.
• Against this background, the European Union began to develop a mechanism for limiting the price of Russian gas.