Natural gas prices in Europe started the new day with a decrease. At the beginning of November, forecasts of hot weather above seasonal norms and the easing of concerns about energy supply in the Middle East caused a decline in natural gas prices.
Gas contracts for December delivery in the Dutch TTF have experienced a significant decline recently. Prices are traded at 46.08 euro/MWh, a decrease of 8.07 percent compared to yesterday’s level. There are several factors affecting this decline.
Political risk consultancy Eurasia Group’s estimate of the probability of keeping the war in the Middle East under control at 70% created some optimism in the markets. This eased concerns about energy supply and raised expectations that natural gas supplies could be more stable.
Additionally, the approach of Storm Ciaran in the United Kingdom also had an impact on the markets. As of Wednesday morning, wind power generation provided more than half of electricity production. However, this storm is being watched carefully as it will bring strong winds and pose a potential threat to electrical infrastructure.
All these factors cause prices in Dutch TTF gas contracts to fluctuate and uncertainty continues in the markets.