Gas Price Lower Again After Highest Level Since 2023

Early trading showed a counter-movement, after the quotation had reached its highest level in over a year at the beginning of the week. The benchmark TTF futures contract for delivery in one month at the Amsterdam exchange was traded at 53.25 euros per megawatt hour (MWh) in the morning.

On Monday, the gas price had temporarily risen to 54.80 euros, the highest level since October 2023. Since mid-December, the price has generally been trending upwards. During this time, the commodity has almost increased by 40 percent in value.

Influence on Gas Price

The gas price was also recently influenced by fears of the potential consequences of US tariff policy, which generally caused significant price fluctuations in commodity prices. Unlike Mexico and Canada, who reached an agreement with US President Donald Trump to suspend the introduction of tariffs for 30 days, there was initially no such agreement with China. The leadership in Beijing has instead responded with counter-tariffs on US goods.

Despite the recent rise to a multi-year high, the price of European natural gas is still significantly below the level it reached in the early phase of the Ukraine war. In the summer of 2022, the quotations had temporarily risen to well over 300 euros.

Gas Price and Weather

According to commodity experts from the Bloomberg economic service, the gas price continues to be supported by the comparatively cold winter weather. Recent weather forecasts for northwestern Europe suggest that temperatures may remain below average in February. This would indicate a continued high demand and ongoing pressure on storage levels, they said.

Since the beginning of the year, gas reserves have been steadily decreasing. According to recent data from the European Gas Storage Association GIE, the total fill level of natural gas storage in Germany was 54.44 percent on February 2. Austria fared better with 62 percent. However, the storage facilities in Austria and Germany are better filled than the EU average of 52.65 percent.

(APA/Red)

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