Reference gas prices on the European market are falling in the new year, as mild weather has reduced demand, reports DPA.

At the TTF hub in Amsterdam, next-month natural gas quotes fell to 69 euro per Megawatt-hour on Wednesday morning, then traded at 67 per Megawatt-hour, the lowest price since February 2022, extending the decline of the past three weeks. Last summer, a record level of 345 euros was registered for one Megawatt-hour.

An important reason for the drop in gas prices is the higher than normal temperatures for this time of year in most regions, which reduces consumption and helps Europe avoid reducing gas stocks, according to Agerpres.

For example, according to data from European gas infrastructure operator EIG, Germany’s overall level of natural gas storage exceeded 90% on January 2. Germany’s gas stockpiles rose for the 13th day in a row after previously falling for several weeks.

After a highly volatile 2022 – the cost of energy reaching a record high amid the war in Ukraine – the market started 2023 less stressed. In December, benchmark gas prices fell by around 47% as Europe managed to replace Russian fuels with liquefied natural gas (LNG).

Warmer-than-usual weather and a slowdown in industry demand at the end of the year could help Europe keep gas stocks high through the end of winter. Lower gas prices are also supporting the European economy, which is suffering from high inflation.