Futures natural gas prices in Europe hit 17-month low

Natural gas futures in Europe continued their decline due to mild weather and LNG shipments as an alternative to Russian gas, falling below 50 euros for the first time in 17 months. Natural gas futures in Europe fell below 50 euros for the first time in 17 months as the region’s worst energy crisis in decades eased. Prices in futures markets have fallen by more than 80 percent since their August peak. Natural gas futures are expected to fall 35 percent in 2023. During this period, mild weather, efforts to reduce energy consumption and strong liquefied natural gas flows from many countries from the US to Qatar stood out as important factors in suppressing prices. It is assessed that prices could rise again in the event of a prolonged cold wave before the winter is over or if there are supply disruptions. It is stated that potential competition with Asian countries for LNG could also pose an upward risk to prices. While high storage levels provide a buffer for Europe, this situation is seen as an optimistic sign that the region can survive this bird and the next winter.