Reference quotations for natural gas on the European market fell below 50 euro for a Megawatt-hour on Thursday morning, for the first time in the last 17 months, following the easing of fears regarding the energy crisis in the region, reports Bloomberg.

Prices are down more than 80 percent from their peak in August, when a cut in Russian gas supplies cost Europe about a trillion dollars, hurting the region’s economy and fueling high inflation. Now that Europe is recovering, mild weather has reduced demand for heating, while the continent has imported liquefied natural gas (LNG) to offset the cut in gas supplies from Russia. Stocks are now at a much higher level than usual at this time of the year, according to Agerpres.

At the TTF gas hub in Amsterdam, where reference prices are set in Europe, natural gas futures for delivery next month were down 4.8% to 49.50 euros per Megawatt-hour, the lowest one-day low since September 2021. This year the price is down about 35%, but is still double the usual level for this time of year.

Analysts warn that prices could rise if the weather cools significantly or if there are disruptions in supply. Competition with Asia for liquefied natural gas could create risks. Europe will have to fill the warehouses with less gas from Russia than last summer, analysts say.

The consistent deliveries of liquefied gases and the high degree of filling of gas deposits give Europe the necessary confidence that it will go through the rest of the winter without problems in the energy supply.

Gas prices are falling, a fact that has removed some of the concerns about inflation and the European economy.