Gas prices in Europe fall nearly 5%

March futures for gas in Europe decreased by about 5% at the beginning of trading, and are below $800 per 1,000 cubic meters, Report informs referring to London's ICE.

The cost of futures on the index of the largest European hub TTF amounted to $780.5 at the opening of the trading session. Then the prices rose slightly to $798.6.

On February 15, prices accelerated decline amid weakening geopolitical fears.

A tangible increase in gas prices in Europe began in the spring of 2021, 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 all-time high of $2,190 in the futures market was reached on December 21. Then the prices decreased, but Europe has seen no such persistently high prices in the entire history of its gas hubs - since 1996.

Experts attribute the price hike to several factors that include strong demand for liquefied natural gas (LNG) in Asia, limited offer from major suppliers and low occupancy of European underground storage facilities after a long cold winter and hot summer of 2021.