Gas price falls to its lowest level in almost two years

Status: 05/25/2023 2:34 p.m

Natural gas is cheaper than it has been for almost two years. Instead of the feared shortage, there now seems to be an oversupply. This is also indicated by the high filling levels in German gas storage facilities.

The price of European natural gas has hit its lowest level in almost two years. The trend-setting TTF futures contract for delivery in one month was traded today on the Amsterdam Stock Exchange at EUR 25.80 per megawatt hour (MWh). Natural gas was last this cheap in June 2021.

Last summer, the prices for natural gas on Europe’s most important stock exchange skyrocketed, peaking at a record price of more than 300 euros per MWh. At the time, the halt to Russian gas supplies in particular fueled fears of an energy crisis.

Inflation, which is still high, is weighing on consumer spending and slowing down economic output.
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Oversupply instead of shortage

Now the opposite seems to be the case: Experts explained the current low prices, among other things, with an oversupply and did not want to rule out a further fall in prices. The price of European natural gas has been falling steadily since the end of last year.

While gas prices are falling, gas storage facilities in Germany continue to be filled. According to the latest data from the European storage association GIE, the fill level in all German storage facilities was 72.76 percent on Tuesday. Gas reserves have been increasing almost continuously for weeks, also because imports of liquid gas have recently increased again.

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