Gas prices in Europe drop 17% in Q1

Gas prices in Europe in January-March 2024 fell by 17% to about $306 per 1,000 cubic meters, as evidenced by data from the London ICE Futures Exchange.

Report informs via TASS that the main factors behind the decline were warm weather, high gas storage capacity and lower demand for gas in the EU.

While on December 29, 2023, gas futures were trading at about $367 per 1,000 cubic meters, on March 28, trading closed at $306, a drop of 17% from the beginning of the year.

In December 2023, the average gas price in Europe was about $408 per 1,000 cubic meters, but then there was a gradual decline to $337 in January (53% lower in annual terms), $288 in February (-51%), and $302 in March (-38%).

The drop in gas prices was due to high gas storage capacity and relatively warm weather. They are currently filled at a record 59% for this time of year. European countries filled their underground storage facilities with gas to the target 90% for the heating season back in mid-August last year, and by the beginning of the withdrawal season they had accumulated a record 99.63%.

In addition, the share of wind generation in EU electricity generation this year is generally higher than in 2023.