Market Reviews

Gas prices in Europe at the launch into space



After ten months of consistent decline, gas consumption in the EU countries in August increased by 6.5% year on year – to 17.5 billion cubic meters, as stated in the monthly report of the Gas Exporting Countries Forum (GECF). At the same time, from January to August, gas consumption in the EU decreased by 9.5% compared to the same period last year, reaching 214 billion cubic meters. It is worth noting that August 2022 was the month when prices reached an all-time high, causing industry to shut down across Europe. Moreover, as follows from the report, 70% of fertilizer production in Europe was stopped during this period.

Last year’s energy crisis in Europe led to a reduction in fuel consumption after a drop in gas supplies from Russia. The European Commission recommended that countries reduce gas consumption by at least 15% amid a shortage of raw materials and high prices. Despite general volatility, gas prices in the EU have stabilized in recent months due to high reserves in underground gas storage facilities and warm weather. In September – November, according to APEC Climate Center forecasts, temperatures in most of the planet will be above normal. This may reduce natural gas consumption, but European production, including the various small bakeries, bars, restaurants that are on every corner in Europe, needs to prepare for the New Year holidays and the new tourists who visit these countries during the holiday period. Therefore, states need to take care of sufficient reserves, including taking into account possible force majeure circumstances and the unpredictability of weather on our planet.