Gas prices declining in Europe
2022.12.14 08:52
Gas prices declining in Europe
Budrigannews.com – As temperatures are expected to return to more normal levels within the next few days, prices of natural gas in Europe decreased.
On Wednesday, benchmark futures slipped as much as 4% after gaining a little bit the day before. By next week, a cold front that swept through northern Europe during the first half of December is expected to break, with temperatures expected to remain close to the 30-year average for the remainder of the month.
Additionally, it is anticipated that wind power production will pick up next week, easing pressure on natural gas feedstock for electricity production.
Increased heating demand has been mitigated by near-record imports of liquefied natural gas into northwest Europe and the United Kingdom. Gas storage facilities have been falling more quickly than usual, but they are still about 87% full.
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Even though gas prices have decreased this week, they are still nearly four times higher than the typical for this time of year.
The countries that make up the European Union tried again on Tuesday to come to an agreement to cap prices in an effort to reduce the high energy bills that have been hurting the economy and driving up inflation. However, they eventually chose to delay a choice after a gathering of countries drove by Germany called for more investigation of the questionable measure.
EnergyScan, the market analysis platform provided by Engie SA, stated in a note that “the indecision of the EU on the regulatory side does not help the market to clear its view.”
at 10:17 a.m. Amsterdam time, they were trading at €133.7 per megawatt-hour, down 2.8%. Over the past month, the European benchmark’s price volatility has decreased. The equivalent in the United Kingdom decreased by 1.9%.
