Gas prices in Europe hit their lowest level in 1.5 years

Natural gas prices in Europe have hit their lowest level since December 2021, due to low demand and high fill values ​​of gas tanks.

At TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, natural gas prices fell to 32.7 euros per megawatt-hour at the close on Friday.

As of 15.10 TSI, the price of one megawatt-hour natural gas in June futures contracts decreased by 2.2 percent compared to the closing date and became 32 euros. Thus, gas prices in Europe, which is at the center of the energy crisis, fell below 35 euros per megawatt-hour for the first time in 1.5 years.

The low demand for gas after the mild winter period in Europe and the high occupancy rates in the warehouses were effective in the decrease in prices.

Prices last stood at 33.1 euros per megawatt-hour on 16 December 2021.

The energy crisis, which emerged due to the supply-demand imbalance in the summer of 2021, when the economies started to recover after the epidemic, deepened with the supply concerns caused by the Russia-Ukraine War.

It reached its highest level in August 2022.

Prices in Europe, which exceeded 30 euros per megawatt-hour in December 2021, continued to rise under the influence of geopolitical tensions, reaching the level of 61.6 euros on February 24, 2022, when the war began.

Prices, which continued to rise due to the war, reached their highest level in history, exceeding 300 euros per megawatt-hour in August 2022.

Although gas prices in Europe fell to 30 euros per megawatt hour due to easing supply concerns, they still hover above pre-energy crisis levels.