Gas prices fell in Europe during the winter amid expectations of weak demand

2023-05-15 18:27:25

Natural gas prices fell in Europe for the winter months amid weak demand, and with higher-than-usual inventories on the continent, making it easier for it to prepare for the upcoming heating season.

Benchmark Dutch futures for February delivery fell regarding 8.5% – the most in four months – to around €51 per MWh. Prices also declined for the months of December and January.

The premium for gas prices for the winter months is now shrinking following rising in recent weeks, amid a weak recovery in demand. There is also growing confidence that the market will be able to withstand any potential shocks, following prices rose several times last year, when Russia cut supplies in the wake of the Ukraine war.

Francesco Martuccia, an analyst at Citigroup, said: “Now, Europe should be easily prepared to fill storage needs for the winter, especially if economic activity is slow and demand rates have changed several times, allowing industries to really adapt to the increase in gas prices.” “.

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