At the end of last week, on May 30 and 31, the price of natural gas dropped to record levels in European markets. It is reported by the Ukrainian Energy Exchange on Monday, June 3.
"At the Dutch TTF, the prices for delivery on the weekend of June 1-2 were set at 10 euros per megawatt, which is the lowest value since 2016. The overall decline in spot prices for the TTF since May 29 was about 20%. All key European trends picked up this trend hubs, not only on the spot market, but also on the futures market ", – said in a statement.
It is noted that prices in Western Europe have decreased due to the growth of average daily temperatures and high wind power, as a result of which the growth of wind power capacity reduced the demand for gas for gas power plants, noted at the exchange.
All this is happening against the background of the filled storages and the consistently high supply of American liquefied gas.
"In 2019, we are seeing an abnormal reduction in the price of gas. For example, in October last year, European hub prices reached 30 euro per megawatt, now it is three times less. Europe is a classic example of a highly competitive market where the price quickly reacts to any changes in demand or supply." , – Inna Shcherbina, a member of the Exchange Committee, comments on the price situation.
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On the Ukrainian energy exchange, according to her, for the same period, the price was halved – from 12,400 to 6,700 hryvnia per thousand cubic meters.
Recall that since June 1, gas for industry has fallen in price in Ukraine – by almost 8%. Naftogaz set the minimum price for industrial consumers at the level of 5,803 hryvnia per thousand cubic meters.