As of Thursday morning, they were trading at around 81.5 euros.
At their peak in August, European gas prices topped 345 euros/MWh as Russia’s weaponization of its natural gas exports to the rest of the continent in response to punitive EU sanctions, and sky-high temperatures over the summer, drove up demand while constricting supply.
The spiking prices sent household energy bills soaring and have fueled a cost-of-living crisis across much of the continent.
However, unseasonably warm weather through winter in much of northwest Europe has reduced demand for heating and allowed the continent to replenish its gas inventory following drawdowns during several cold snaps over the last few months.
Goldman Sachs in November predicted a sharp fall in European gas prices in the coming months as nations gained a temporary upper hand on supply issues.
“As a rule of thumb, a rise or fall in gas prices by €100 per MWh changes the gas bill of the euro zone economy — at 2021 gas consumption — by an amount equal to almost 3% of GDP once households and consumers have to bear the full costs of the change in gas prices,” Berenberg Chief Economist Holger Schmieding explained in a note last month.
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