Wholesale gas prices have returned to levels not seen since before the onset of supply constraints by Vladimir Putin, indicating a shift in Europe’s energy crisis situation.
The Dutch front-month futures, a key indicator in European markets, dropped below €23 per megawatt hour, reaching their lowest since May 2021.
This decrease in prices is attributed to a relatively mild winter in Europe, resulting in gas storage facilities being approximately 65% full, significantly above the usual levels for this period.
Gas prices have plummeted over 90% from their peak following Russia’s invasion of Ukraine, when they soared to over €339 per megawatt hour.
In the UK, the corresponding contract has seen a similar decline, dropping from 640p per therm in August 2022 to under 57p currently.
