European gas prices drop to lowest since June
Spot prices for natural gas in Europe plunged to a four-month low on Tuesday, data from the London Intercontinental Exchange shows.
November futures on the TTF hub in the Netherlands fell as much as 7% to $1,202 per 1,000 cubic meters, or €118 per megawatt-hour in household terms, in early trading, the lowest intraday since June 15.
Analysts say that natural gas prices continued October’s downward trend amid positive reports about the EU’s storage levels, which reached above 92% last week. Tuesday marked the fifth consecutive day of declining prices.
“The situation is attributed to several countries in Europe announcing that the supply picture is healthy ahead of the upcoming winter, while mild and windy weather means that demand has not really started to rise yet at this point of time,” trading firm Energi Danmark said in a note, as cited by Bloomberg. Weather forecasts promise at least one more week of warm weather, which may keep gas prices low for a while.
Meanwhile, the European Commission is reportedly planning to unveil a proposal on a temporary “dynamic” price cap for transactions with the TTF later this week. The measure will be discussed by EU representatives at the summit on October 20-21, aiming to avoid severe price spikes during the heating season.
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