LONDON – Europe’s natural gas price today sank under €50 for the first time in nearly a year and a half, as a mild winter curbs heating demand.
The price of benchmark Dutch TTF gas is now almost seven times lower than the record high struck after key gas producer Russia launched its invasion of Ukraine almost one year ago.
“European gas prices have fallen by 50% since November thanks to unusually warm weather and muted...competition with China when its zero-Covid-19 strategy was still in place,” noted UniCredit analyst Edoardo Campanella.
China lifted its pandemic restrictions in December but this has yet to boost its appetite for gas.
Following Moscow’s invasion of Ukraine a year ago, Western nations have been forced to source gas supplies from outside sanctions-hit Russia, with Norway becoming Europe’s main supplier.
The Ukraine conflict also sparked global economic turmoil as the invasion fuelled energy bills and broader inflation.
“Without the sharp reduction in Russian gas deliveries, Europe would now likely be enjoying above-average (economic) growth rates due to the post-Covid-19 rebound, instead of suffering near stagnation,” said Berenberg analyst Salomon Fiedler. – AFP, February 17, 2023
