The price of gas in Europe fell below $350 for the first time in almost 2 years

According to ICE exchange data, the price of gas in the EU has fallen below $350 per thousand cubic meters. This happened for the first time in almost two years – since June 7, 2021. The lowest local price point was registered at $348.98 per thousand cubic meters, considering the current Forex market rate.

Analysts highlight that European natural gas prices have fallen due to low demand. Simultaneously, European storage facilities are filled with a significant amount of fuel reserves, easing preparations for the upcoming heating season.

Currently, Europe's gas storage utilization stands at 64.31%, higher than in the same period last year (40.72%). Experts point out that the high level of gas reserves helps maintain low prices: European buyers are unwilling to pay high prices, considering several months remain before the next heating season.

Additional pressure on prices is also exerted by the substantial contribution of renewable energy sources to power generation. To date, wind power generation in Europe has reached its highest proportion of consumption in the last 35 days – 20.7%. The last time this proportion surpassed the current level on April 12th (21.8%).