The forward price of natural gas futures for June dipped below the €30-per-Megawatt hour mark on the Netherlands-based TTF exchange Monday. At the time of writing futures for months later in the year are higher than this.
A warm spring and restructure of energy consumption across Europe is behind the lower prices, while supply remains high as storage facilities are mostly well replenished.
The year started with natural gas futures prices of around €100 per MWh, but since they the trend has been for a fall, with the June forward price set at €35 per MWh at the start of this month.
This all followed soaring prices, starting from the second half of 2021 as Covid restrictions began to lift, while natural gas supplies from the Russian Federation started to be restricted, from the Russian side, at around the same time.
This meant that whereas natural gas hovered around the €17-per-MWh mark at the start of the year, by August the price was €340 per MWh.
Forward prices for October and November remain higher at the time of writing, at €37 and €46 per MWh respectively, and around €10 per MWh higher than they had been at the start of the month.
Editor: Andrew Whyte, Barbara Oja