Decline of gas prices in Europe may accelerate in April – Reuters

Earlier this year, European gas prices rose to a two-year-high. The surge was driven by strong demand for heating over the winter period combined with low electricity generation by wind farms. Gas-fired power generation in Europe in the first two months of this year reached its highest level since 2021, according to data from the Ember think tank.

However, gas consumption for power generation tends to fall sharply in the region after the end of March each year, Reuters noted. This is caused by seasonal drop in demand for heating and increased generation at solar and wind power plants, which come close to the traditional annual peak of output during this period.

According to statistics provided by Reuters, from 2015 through 2024, the April-to-June quarter was the weakest period in a year for gas-fired power generation, falling 25% on average compared to the January-to-March quarter.

The analysts quoted by Reuters believe that if this pattern is continued this year, gas prices in Europe could get a new downward push despite an already registered drop of more than a quarter from their 2025 peak.