Natural gas prices on European exchange fall by over 7 per cent
The price of natural gas on the European market recorded a decline of approximately 7.3 per cent at the beginning of the week, falling to 58.94 euros/MWh in the trading session of July 27, compared to 63.58 euros/MWh on July 24.
According to Energocom joint stock company, the decrease in quotations is driven by a reduction in the geopolitical risk premium, amid signals of an end to military actions in the Middle East and prospects for the reopening of critical maritime routes, including the Strait of Hormuz. At the same time, the drop in oil prices on international markets has contributed to easing pressure on the natural gas market.
Nevertheless, Energocom emphasizes that the market stays volatile. According to the company, prices continue to be affected by the relatively low level of European gas storage, at about 55.35 per cent of capacity, below the five-year average, as well as by a decrease in liquefied natural gas flows to Northwestern Europe, which are around 22 per cent below the average of the last 30 days.
At the same time, temperatures forecast to remain above normal in more regions of Europe could support demand for gas used in electricity generation in the coming period.
Energocom says that it continues to monitor developments on the European natural gas market and is taking the necessary measures to ensure public service obligations are met under safe and competitive conditions.
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