F GAS-1.27%
European gas prices drop 12%, nearing pre-war level
The price of European gas futures dropped nearly 12% on Friday, with the Dutch TTF natural gas futures, which serve as the benchmark across the continent, coming down to its fresh 10-month lows, nearing the level before the beginning of the war in Ukraine in February this year.
The main reason for the price drop appears to be warmer-than-expected winter temperatures, which have ostensibly allayed worries about the region's shortages of the commodity. In addition, the framework agreed upon by the member states of the European Union, which will impose price ceilings on the commodity starting early next year, appears to have been supporting the falling trend in gas prices.
For deliveries in February, Dutch TTF natural gas futures plunged 11.58% to sell at €75.75 per megawatt hour, while UK natural gas futures tumbled by 11.75% to 185.360 pence per therm at 1:50 pm CET.