European natural gas prices return to pre-Ukraine war levels

LTC Eugene Chu
..."Front-month natural gas futures on the Dutch Title Transfer Facility, the benchmark contract in Europe, plunged in recent weeks to bottom out below 77 euros ($81.91) per megawatt hour, a level not seen since February — prior to the beginning of a full scale war in Ukraine.

As of Thursday morning, they were trading at around 81.5 euros.

At their peak in August, European gas prices topped 345 euros/MWh as Russia’s weaponization of its natural gas exports to the rest of the continent in response to punitive EU sanctions, and sky-high temperatures over the summer, drove up demand while constricting supply.

The spiking prices sent household energy bills soaring and have fueled a cost-of-living crisis across much of the continent.

However, unseasonably warm weather through winter in much of northwest Europe has reduced demand for heating and allowed the continent to replenish its gas inventory following drawdowns during several cold snaps over the last few months."...