European gas futures fall in price over 5%

After jumping to almost $3,900 per 1,000 cubic meters on March 7 and keeping the level of $3,300 on March 8, gas prices in Europe continue their steady decline, falling below $1,400 per 1,000 cubic meters on March 11, Report informs referring to the London Stock Exchange ICE.

The cost of April futures on the index of the most liquid TTF hub at the opening of the trading session was $1,387.6, after which it slightly increased to almost $1,430, and then again turned to decrease. So far, the price low is $1,330.8, which is 7.4% lower than the previous settlement price of $1,437.7.

However, a significant increase in gas prices in Europe began last spring, when the average spot price on the TTF hub index fluctuated within $250-$300 per 1,000 cubic meters. At the end of the summer, the value of a day-ahead delivery contract exceeded $600, and in early October it was already $1,000. The price high of $3,892 was reached on March 7.

Experts attributed the rise in prices to several factors: high demand for liquefied natural gas (LNG) in Asia, limited supply from major suppliers, and low levels of occupancy of European underground storage after a long cold winter and a hot summer in 2021. Such persistently high prices have not been seen in the entire history of the operation of gas hubs in Europe - since 1996.