Gas prices fall in Europe despite cold weather

Gas prices have fallen significantly since 1 January, despite lower temperatures in Europe this week. Prices for delivery in the first quarter were below €31/MWh on Thursday afternoon, at the same level as prices for delivery next July. The level of gas stocks, 83% full at the start of the week, is leading the market to "straddle" the winter. Gas consumption remains below the averages of recent years, which, combined with stock levels, is having a powerful depressive effect on prices. With the shutdown of gas production at Groningen and the drastic reduction in onshore gas imports from Russia, Europe has lost flexibility and is now heavily dependent on LNG supplies, particularly from the United States, which increases the risk of price volatility, even when prices are falling.