Warm weather has lowered gas prices for Europe

W

Gas was cheaper on Friday. As a result, the price of fossil fuels has come closer to the price at the beginning of this year.
The warm weather this winter means that European gas supplies are still full. As a result, European countries and energy companies want to pay less to buy more gas.

The price of a megawatt hour of gas on the leading Stock Exchange in Amsterdam was still above 80 euros at the beginning of the trading day, but at the end of the day it was around 10 percent less. This means that the difference from the price at the beginning of this year is still around 13 percent. And that while the gas price peaked at more than 200 euros per megawatt hour shortly after the Russian invasion of Ukraine.

When Russia largely shut down the gas tap this summer, the gas price rose even further, to almost 350 euros per megawatt hour. From then on, European countries bought gas en masse elsewhere to meet their obligations, but also to replenish gas stocks.

In addition to the favorable temperatures, more electricity is generated with windmills. As a result, less gas is needed to generate electricity.

Gas prices are still higher than last summer. In mid-2021, the price was still around 20 euros per megawatt hour.


By: Lesley Woutersen

Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by [email protected]

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