European gas prices have fallen to the lowest level since the start of the energy crisis, boosting hopes of a stronger economic recovery as energy pressures ease.
The European TTF benchmark hit a low of €35.20 a megawatt hour on Friday, a level last seen in July 2021 when Russia was first starting to squeeze Europe’s energy supplies ahead of its invasion of Ukraine. It later rose slightly to end the week at €35.95. The TTF benchmark peaked at more than €340/mwh hour last summer after Russian slashed gas exports to Europe, stoking inflation and sending energy bills soaring.
The drop towards €35/mwh has bolstered the view that energy prices are returning to normal after Europe successfully tapped alternative gas sources, accelerated the roll out of renewable energy and benefited from a mild winter that has left gas storage sites brimming for the time of year.