Gas prices in Europe fell by 24%
Gas prices in Europe fell 24% on Thursday
Dec 24, 2021
1 min read
Anna BakkerNews analyzer

This is a record decline in the entire history of trading.

By the close of trading, gas futures prices in Europe fell below $ 1,500 per thousand cubic meters, losing almost $ 500 a day. Two weeks ago, against the background of cold weather, a sharp rise in prices began, during which time prices have doubled.

Gas prices in the EU fell sharply after the rally attracted the US LNG fleet. At least 10 ships with American liquefied gas are heading to Europe, writes ProFinance.

The rapid collapse of prices began after it became known about a sharp increase in the supply of liquefied gas to the EU, which previously went to Asia, writes finanz. Gas traders placed a fleet of tankers at sea heading to Asia after prices in the EU surpassed Asian prices by nearly 20%.

Europe will receive up to 40 additional LNG shipments in December and January, according to the Financial Times, including the first shipment in 10 years from Australia, which previously supplied almost exclusively to Asian countries.

From the beginning of the year to mid-December, gas prices in the EU have increased tenfold. Experts linked the rise in prices to several factors: the low occupancy rate of European underground storage facilities, limited supply from large suppliers and high demand for liquefied natural gas in Asia. Now the mood of market participants is also influenced by the weather factor and uncertainty with the launch of Nord Stream 2.

On Thursday, during an annual press conference, Russian President Vladimir Putin said that in the situation on the EU gas market there is a role for Ukraine, which buys gas from Germany through Poland and thereby sucks volumes from the market.

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