On Wednesday, the European gas price dropped below the mark of €100 per Megawatt-hour (MWh) due to the warmer weather in Europe and the announced EU agreement on a €180 price cap from mid-February.
On the main European gas exchange, the TTF, the gas price fell below €100/MWh shortly after opening. The lowest level was €96,324 around 08:00. Just before 10:00, however, the price of gas briefly went above €100, only to drop again. At noon, the price was €99.25/MWh.
It has been since June that the price of natural gas dipped below the €100 mark. In August, an absolute record was recorded when the price peaked above €340/MWh.
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In part, the falling gas price is due to the mild December temperatures in large parts of Europe. This week's unexpected warmer weather is causing a decrease in demand for heating, meaning the gas supply remains stable.
Additionally, the agreement on a price cap for natural gas that the European energy ministers reached on Monday is also depressing prices. From 15 February at the earliest, the mechanism will come into effect if the wholesale price for natural gas rises above €180/MWh for at least three days and exceeds the international LNG price by more than €35.
