Gas prices in Europe continue to fall this week to extend a downward trend that started in December 2022 when Dutch TTF Gas Futures touched 150 Euro per MWh. By January 17, prices of March futures dropped to 53.605 Euro per MWh. This level is below the 52-week low and may signal a further decline of gas prices.
This year gas futures started at 79.4 Euro per MWh and quickly dropped down. The reason for this drop is primarily the deteriorating demand for gas in Europe. Deutsche Bundesnetsagentur (BNetzA), a German Federal Network Agency, reported that the demand for gas is 38% below the average for 2018-2021. Such low demand was not only caused by warmer than expected weather last autumn and this winter, but also by a lower producer demand for gas. Massive gas saving measures approved in the EU, and alternative gas deliveries prompted to replace Russian gas are also largely contributing to the stalling demand. The portion of Russian gas consumed in European dropped from 40% in 2021 to 7-9% in 2023. Gas storages across Europe are full of gas reserves at 81.7% as of January 14, despite the fact that half of the winter heating season has already passed.
Even rising crude prices to $85 per barrel of Brent crude has hardly affected gas prices. This week gas prices are expected to move within the range of 41-65 Euro per MWh.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 Teletrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.