The effects of the energy crisis in Europe have softened considerably this winter as the weather warms up and storage facilities are filled with gas on time. About informs Bloomberg agency.
Hot weather and reduced gas consumption in the European Union (EU) helped lower fuel prices in the region. Consumption fell 13% in December and in the first days of 2023 EU gas demand fell 38% compared to the average of the last five years. Consumption in Europe is expected to be around 16% below the five-year average for the full year, the publication said.
Market experts agree that there is currently a surplus of liquefied natural gas (LNG) on the European market, as the supply of this fuel reached record levels in December 2022. But the situation could change dramatically if demand from China increases.
Analysts think the fuel situation in the region is now more optimistic than it was in the fall. However, the situation in the energy market can also change significantly in the event of a standstill or interruption in supply.
At the end of December, Bloomberg reportedThat the imposition of container gas prices by the EU could only worsen the situation with regard to the energy crisis. The EU gas price cap mechanism can help prevent price fluctuations. However, the publication pointed out that because of this, Europe will become particularly vulnerable in terms of gas supply and increased competition from Asian countries.