Price of gas in Europe has dropped to a minimum for the first time since the invasion of Ukraine: what is happening

Two days before the start of the full-scale war, on February 22, gas on the TTF was trading at 79.9 euros per megawatt-hour, but on February 24, quotes “jumped” to 128 euros.

The price of gas at Europe’s largest hub in the Netherlands (TTF) has fallen to the level of February 24, 2022, when the Russian Federation’s full-scale invasion of Ukraine began. Gas prices are currently falling amid warm weather, The Guardian reports.

It is noted that during trading on Wednesday, December 28, gas was traded at a price lower than 76.7 euros per megawatt-hour, which is the lowest rate since the Russian attack on Ukraine. Then the price of gas rose to 83.7 euros, and on Thursday, December 29, gas cost 85.50 euros per megawatt-hour.

Two days before the full-scale war began, on February 22, gas on the TTF was trading at €79.9 per megawatt-hour. Already on February 24, quotations “jumped” to 128 euros. The maximum values were recorded in August 2022, when the gas price approached the mark of 350 euros per megawatt-hour.

At the same time, several months of the heating season are still ahead in Europe, so analysts believe that the energy shortage may become a problem next winter as well. But traders are also weighing the effects of a recession expected in several major European countries, which could dampen demand for energy.