European gas prices drop
The price of gas in Europe fell below $1,000 per thousand cubic meters during Monday trading for the first time since June 14, according to data from the London Intercontinental Exchange (ICE).
However, prices remain three times higher than last year.
The price of gas futures for November delivery at the TTF hub in the Netherlands declined to around $990 per thousand cubic meters, marking a 14% drop for the day.
Analysts say that natural gas prices continued October’s downward trend amid positive reports about the EU’s storage levels. The experts however do not exclude the possibility of a new surge in prices. According to them, unusually cold months could again reignite fears of supply shocks.
Concerns about winter supplies have been gripping the EU for months, spurring efforts to hoard fuel. According to data from Gas Infrastructure Europe (GIE), reserves are now almost full and above the five-year average.
Meanwhile, Bloomberg reported last week that despite having ample stock, EU member states appear to have little control over the bloc’s fuel. The media outlet indicated, citing its data, that only about 10% of the gas in storage facilities from Italy to the Netherlands is under the direct control of public officials through national strategic reserves. The rest is reportedly in the hands of international trading companies, energy utilities, and industrial groups. Those firms are free to sell to the highest bidder, even if it’s in another country, while their main interest is maximizing their profit margins.
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