European’s natural gas prices have tumbled to their lowest level in nearly 18 months, which shows that the region has been avoiding an energy crisis, according to CNN on Friday.
Independent Commodity Intelligence Service’s data showed that benchmark wholesale gas prices fell almost 5 percent this Friday, hitting $52 per megawatt hour, which records their lowest level since September 2021.
The price drop comes after an unseasonably warm weather in Europe this winter, in addition to the region’s efforts to conserve gas, find alternative suppliers and fill its storage facilities.
“If worst came to worst, a combination of no Russian supplies and significantly reduced [gas] savings of only 10 percent would expose the EU to a risk of shortages next winter…,” said Salomon Fiedler, an economist at Berenberg bank.
The bloc has boosted imports of pipeline natural gas from Norway, and also increased imports of liquefied natural gas mostly from the United States and Qatar, CNN reported.
The decrease in gas prices comes just a few months after the continent has been facing shortages and potential blackouts, as Russia, its biggest supplier, lowered gas exports, in retaliation for EU sanctions over its war with Ukraine.
