Gas Price in Europe Drops Slightly

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After a few days of price increases, the gas price in Europe is going down. Buyers are looking at how to meet Russian requirements without violating sanctions against the country.

 

The gas price on the Dutch futures market – the benchmark for the price of natural gas in Europe – fell slightly more than 5 percent on Thursday to just above 100 euros per megawatt-hour.

This week, the gas price rose sharply after Russia closed the tap to Poland and Bulgaria because both countries do not pay in rubles. Russia warned that other countries could suffer the same fate if payment was not made in rubles.

Several European parties are said to have already paid in rubles; others opened an account with Gazprombank. Therefore, the market assumes that a compromise will be reached and that Russian gas will continue to flow for the time being.

Europe and Germany, in particular, need the gas, while Russia needs the money, analysts say.

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