EurOil: European gas prices return to pre-war level

European gas prices have slumped to their lowest level since before Russia launched its invasion of Ukraine in late February, as the continent enjoys a milder-than-usual winter and ample LNG supply.

The front-month TTF contract closed at €72.3 per MWh ($817 per 1,000 cubic metres) on January 3, representing its lowest level since mid-February. By 15:15 GMT on January 4, the contract had dropped further to under €66 per MWh. The UK NBP contract has seen a similar descent.

The unseasonably mild winter has been the main factor behind the steep fall in European gas prices in recent months. Capital cities such as Berlin and Paris experienced temperatures of between 15-20 degrees Celsius in the first days of the new year – a time when they typically ensure temperatures closer to freezing.

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