For the first time since Russia’s Ukraine incursion, European natural gas prices have returned to their typical trading ranges, marking a setback in Vladimir Putin’s energy warfare.
The continent’s pricing benchmark, Dutch front-month futures, dipped below €30 per megawatt hour on Thursday and briefly today, achieving its lowest point since June 2021.
A stable supply, milder weather, and bolstered renewable generation have led to Europe’s energy market experiencing a seven-week downward trend, the longest in six years. This signifies the market is finding a new, lower equilibrium.
Europe entered its gas storage refill season with already high reserves, thanks to a milder winter. This circumstance has contributed to maintaining price stability.
Analysts at Energy Aspects highlighted that the recent surge in injections indicates that Europe could fully stock its sites by the early summer. This scenario presents a considerable downward risk to prices towards the end of the third quarter.
