European gas prices have fallen by almost a fifth to about 90 euros. That is the lowest level since December 6. Last week the price peaked to almost 188 euros.
Prices already fell by a quarter last week after an increasing number of ships carrying liquefied natural gas (LNG) sailed to western European ports. Shipping data from Bloomberg news agency shows that at least 15 gas tankers are en route from the United States to ports in Western Europe. In addition, a number of ships carrying American LNG are on their way, the destination of which is not clear, but which also appear to be heading for Europe.
The milder weather forecast for much of Europe will curb energy demand. In addition, uncertainty remains about the impact of the pandemic, especially now that the number of infections worldwide is rising rapidly, which affects the demand for energy.
However, Europe is still experiencing an energy crisis. Gas stocks are still at a low level. Prices have more than quadrupled this year. This is partly due to less gas supplies from Russia to Europe. France’s decision to shut down four nuclear reactors for extra maintenance also pushed the price up.