The cost of European gas in the international energy markets has continued to decrease. On Monday, gas futures on the Dutch TTF were reduced by 7 percent to 175 per megawatt hour.
This is the lowest level reported since July 25. However, compared to the annual average for this period, the costs are still seven times higher than usual.
Moreover, it would be seen that measures taken at the European level to counter high energy prices are starting to have an effect. Major energy consumers all over the European Union are rapidly decreasing their reliance on Russian gas. At the same time, the European Commission has set out new price caps to control run-away prices.
All over Europe, the government are preparing massive energy interventions to lower prices for households and businesses.
In Germany, the government has decided to take over the activities of Russian oil company Rosneft’s activities within its borders and is also considering buying three major gas companies.
In the United Kingdom, Europe, the government is preparing a £40 billion plan to halve energy costs for companies. France also aims to keep the price of energy for consumers under control.
With the cold temperatures on the way, the energy providers expect an increase in gas demand in the coming weeks.
In addition, traders carefully observe the gas level currently in underground storage within Europe. The European Union exceeded its 80 percent gas storage capacity target at the start of September, which has since risen to around 86 percent.
Yet experts warn that the gas stored will not be enough to weather the winter, stressing the need to curtail demand. Along with this, European Union Member States have pledged to reduce their demand for natural gas by 15 percent from August to the end of March 2023.
Furthermore, other drastic measures may still be needed to reduce reliance on natural gas this winter, including massive cost savings and modernisation of certain buildings.