Warm weather in Europe contributes to continued decline in gas prices

Favorable weather conditions in Europe have contributed to lower gas prices. Dutch TTF Natural Gas Futures have been declining for a week in a row, while abnormal temperatures have been reported in EU cities.

Contracts are signed at a price slightly above 850 euros per thousand cubic meters of gas, which is five times lower than summer highs, but several times higher than pre-crisis levels. In addition, this value is more than twice lower than the agreed gas price ceiling, which was set at 1,900 euros per thousand cubic meters.

As Bloomberg notes, current weather conditions have an impact on reducing the load on the power grid in Western Europe. It is expected that the air temperature in Frankfurt on New Year's Eve will reach 16 degrees above zero, which is 10 degrees above the norm of thirty years. The situation is similar in Marseille, where the air temperature will be 17 degrees above zero on the night of January 1. According to forecasts, atypically warm weather will continue in the first two weeks of January.

Winds also have a beneficial effect on the situation in the European Union. This week, the total output of wind power plants in Germany will exceed 42 thousand megawatts, which can be compared with the record values of February. However, taking into account energy prices, the European winter is still difficult to call tropical.