After record high in summer: European gas price falls to its lowest level since June
Created: 12/27/2022, 4:08 p.m
By: Lisa Mayerhofer
Since Russia turned off the gas supply, gas prices have reached record highs.
But right now gas prices are falling again - and the weather is helping.
Frankfurt/Main – The price of European natural gas continues to fall.
On Tuesday morning, the TTF futures contract for Dutch gas was temporarily trading at 80 euros per megawatt hour.
European gas was last this cheap in June.
According to estimates by the Federal Network Agency, the recent mild winter weather and more wind energy have led to lower consumption.
Mild temperatures reason for falling gas prices
In the further course of trading, the TTF futures contract, which serves as a benchmark for the European price level, was traded at EUR 82.60.
The gas price has been trending downwards since mid-December.
During this time, the TTF price has fallen by around 50 euros.
The listing reached a record high of EUR 345 in the summer.
At that time, Russia's gas supply freeze triggered a surge.
The main reason for the falling price is mild temperatures, which keep consumption comparatively low.
During the Christmas holidays, the temperatures were significantly higher than in the middle of the month when permafrost prevailed in large parts of Germany.
Gas is being stored again in Germany
Federal Network Agency boss Klaus Müller explained the lower gas consumption with an increase in energy production from wind power.
As a result, less gas was needed to generate electricity, he wrote on Twitter on Tuesday.
In addition, fewer exports to France would have helped.
Gas is now being stored again in Germany.
According to data from the European storage association GIE, the fill level in all German storage facilities on Christmas Day was 88.22 percent of the maximum amount.
It was therefore an increase of 0.38 points on the previous day and the fifth increase in a row.
Despite the recent relaxation, the price of European gas is still at a comparatively high level.
In 2020, the TTF prices were below the 20 euro mark.