Gas prices in Europe remain below $900 per thousand cubic meters

Exchange prices for gas in Europe remain below the level of $900 per thousand cubic meters. January futures on the TTF index (the largest hub in Europe) opened trading in the red – at $880.6 dollars per thousand cubic meters (-0.1%). Then the price continued to decline – to the level of $870.3 (-1.3%). Such dynamics of quotations is observed for the first time since February 21. 

Recall that on December 19, the EU countries agreed to establish a maximum exchange price for gas. It will amount to 180 euros per MWh (almost $2,000 per thousand cubic meters at the current exchange rate) and will be effective from February 15. 

This measure is designed to protect European households and businesses from gas price spikes. According to Western media, the high cost of energy in Europe has caused the highest inflation in recent decades.

Gas prices in Europe increased significantly last year. And if in the spring of 2021 gas quotes rose to the range of $250-300 per thousand cubic meters, then by the end of summer prices exceeded $600, and in the fall – already $1000. At the beginning of 2022, the cost of «blue fuel» reached $2,000, and at the beginning of spring prices rose to a record high of $3,892 per thousand cubic meters – amid fears of a ban on the import of Russian energy resources. 

Analysts note that despite the current decline, gas quotes today are several times higher than in the long-term history of observations. There have not been such high gas prices in the entire history of gas hubs in Europe – since 1996.