The Cost of Gas in Europe Fell Below $1.000 Per 1.000 m³

by Olha Povaliaieva
Wednesday, October 26, 2022
The Cost of Gas in Europe Fell Below $1.000 Per 1.000 m³

Oil prices in the USA also fall amid rising crude inventories

According to the ICE exchange, for the first time since June 14, the price of wholesale gas fell below $1.000 per 1.000 m³. For example, the November futures price of the Dutch TTF hub is now $989 (€97.25 per MWh). According to ICE, on October 24, the price fell by almost 15%. According to Bloomberg, the price decrease is because European storage facilities are more than 90% filled with gas for the new heating season. Thus, Russia will be unable to blackmail Europe in the cold winter. Supply worries cap losses.

In retrospect, this fall was not sudden. On October 17, the gas price fell below $1.400 per 1.000 m³. This means that the price reduction is 6.3%.

Previously, the Title transfer facility hub (Holland) was the benchmark for the price of liquefied gas for logistics in Europe. Now Europe is targeting a different index as the TTF focuses on pipeline supplies and no longer represents a market with a larger share of LNG.

A similar situation has developed with the price of oil in the United States. On October 26, the cost of oil fell as crude oil reserves in storage turned out to be larger than experts had predicted. "Fears over the offer limited losses," reports Reuters. For example, futures for December Brent oil fell by $1.03/1.1%. Thus, the cost of Brent futures in the US is now $92.49 per barrel.

Futures for the same period for West Texas Intermediate oil fell to cent 75/0.9% and are now worth $84.57.

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