Sharp decline in gas prices in Europe explained

Bloomberg: gas prices in Europe have declined due to the rapid filling of storage facilities, the cost of gas in Europe has begun to fall after multi-month highs reached last week, amid reports of rapid filling of storage facilities.

This reason was called by Bloomberg analysts.

In particular, they took into account the statement of the German Economy Minister Robert Habeck that the filling of storage facilities to the level of 85 percent is expected in early September, and not in October, as previously predicted.

In a comment to Die Zeit, the official explained that the gas market will soon calm down, and prices will drop even more. In his opinion, the reason for the sharp rise in recent weeks was the actions of speculators, accelerating demand.

Another reason for the fall in the cost of fuel at the beginning of the week could be an increase in the supply of liquefied natural gas (LNG) from the United States. After the completion of preventive repairs, they have reached their maximum since June, and will only increase in the future.

In general, European storage facilities are filling up faster than planned, and most countries have already reached their targets. In particular, French President Emmanuel Macron said he was confident that the country would not experience problems with fuel in the coming winter.

Habek’s words look especially significant for the reason that Germany has the greatest need for Russian gas, and if it manages to solve the problems, the danger of an energy crisis will significantly decrease.