Baku 21° C
Gas prices in Europe, after a record jump to almost $2,200 per 1,000 cubic meters at the end of December, continued to decline and dropped by almost three times in early January, but they are still at a high level, Report informs referring to Prime agency.
According to experts, until 2025, the cost of gas may fall below $500 and even $200 per 1,000 cubic meters.
A tangible rise in prices for gas in Europe began in spring, when the average spot price according to the TTF index fluctuated within $250-$300 per 1,000 cubic meters, in the last days of summer the cost of a day-ahead delivery contract exceeded $600, and at the beginning of October, it crossed the threshold of $1,000. In December, prices grew twice.
Experts attributed the unprecedented rise in gas prices to several factors: the low occupancy level of European underground storage facilities, limited supply from the main suppliers and high demand for liquefied natural gas in Asia.
The gas price started to decrease after reaching the historical high. Lower prices may be associated with additional LNG supplies to Europe from the US and an increase in electricity generation at European wind farms. The situation on the gas market in Europe remains difficult: prices remain above $800, the filling of European gas storage facilities is at the lowest level in ten years, winter continues and so far no one can say whether there will be enough gas for consumers.
