Average gas price in Europe increases by 5%

In February 2025, the average gas price in Europe increased by 5% compared to January, reaching approximately $542 per 1,000 cubic meters, according to data from the London ICE stock exchange, Report informs via TASS.

Since autumn 2024, gas prices have been gradually rising at European hubs. In September 2024, the average price was around $416 per 1,000 cubic meters (0.3% less year-on-year). The price then rose to $456 in October (-11% YoY), $491 in November (-4% YoY), $489 in December (+20% YoY), $517 in January 2025 (+53% YoY), and finally $542 in February (+88% YoY).

The main factors driving the price increase were high volumes of gas withdrawals from European storage facilities and a decrease in wind power generation.

Interestingly, while gas futures traded at around $577 per 1,000 cubic meters on January 31, they closed at $475 on February 28, a 17.7% decrease from the end of the previous month. This price drop was associated with the commencement and smooth conduct of negotiations between Russia and the United States.

During February, mixed price dynamics were observed. In the first half of the month, quotations approached $630, a two-year high, driven by record gas withdrawals from European underground storages. Currently, European underground gas storages contain about 43.5 billion cubic meters of gas, less than 39.5% of the total capacity.

Since the start of the heating season in late October 2024, EU countries have withdrawn nearly 66 billion cubic meters of gas from storage, with gas usage exceeding 62 billion cubic meters.