Home News Gas prices in Europe hit all-time low since Russian invasion of Ukraine

Gas prices in Europe hit all-time low since Russian invasion of Ukraine

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According to the quoted source, this is due to the warming of the weather and the signals from the Kremlin that the payment in rubles is expected only next month.

Thus, on the Amsterdam Stock Exchange, gas futures quotations fell by as much as 12% on Tuesday morning, to 84 euros for a Megawatt-hour, the lowest level recorded after February 23, one day before the start invasion of Ukraine, informs Agerpres.

Tuesday was the second consecutive session to lower prices, after the 9.2% decline recorded on April 14, before the Easter holidays.

The European market has focused on the evolution of gas supplies from Russia, its main supplier, especially after last month President Vladimir Putin announced that hostile countries will have to pay in rubles for Russian gas.

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However, Kremlin spokesman Dmitry Peskov said on Monday that “there is still time” for Europe to pay in rubles for Russian gas supplies in April, as those payments expire sometime in May. he declined to comment on whether there were customers who agreed to pay in rubles and set up bank accounts requested by Putin.

At the same time, Maxar analysts have predicted that above-average temperatures in south-eastern Europe will extend to the middle of the continent next week. These developments would reduce some of the pressures on natural gas demand.

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“The price of natural gas has fallen as short-term fundamentals have eased,” said Edmund Siau, chief gas and LNG analyst at FGE.

Destruction of demand and the transition to liquefied gas have eased pressures on European gas prices, but the specter of competition in Asia remains. “Traders are wondering what Asia will do with the quarantine in China and what is the plan to replenish stocks before winter comes,” said Edmund Siau.

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