Because of political reaction
European natural gas price falls once more
After a significant increase at the beginning of the week, the price of European natural gas fell noticeably once more on Tuesday.
The price of natural gas has recovered following the previous day’s jump. (archive image)
In the early followingnoon, the futures contract TTF for Dutch natural gas cost around 220 euros per megawatt hour. That was around ten percent or 25 euros less than the day before. The TTF contract serves as a benchmark for the European price level on the natural gas market.
One reason for the fall in prices is likely to be Europe’s possible response to the looming natural gas crisis. According to an internal discussion paper available to the German Press Agency, the European Commission is examining options for capping gas prices. On Friday, the EU energy ministers want to discuss various options for curbing the high gas prices. The TTF price is currently almost three times higher than at the beginning of the year.
Natural gas prices rose sharply on Monday following Russia suspended its gas supplies through the Nord Stream 1 pipeline until further notice. The reason given by the Gazprom group at the weekend was technical problems. However, it is assumed that Russia wants to put even more pressure on the West in the conflict over Ukraine. The dependence of Europe and Germany on Russian natural gas is high. Since the Ukraine war, great efforts have been made to reduce dependency (SDA)
