European gas prices have slipped below 350 dollars for every thousand cubic meters, a level that marks a new low for the season. This trend is linked to the quieter demand period after the heating season, explained by Igor Yushkov, a leading analyst at the National Energy Security Fund, in an interview reported by RT. The price point represents the first time such a level has been seen since June 7, 2021, illustrating the volatility and the shifting balance between supply and demand in the European market.
According to Yushkov, the end of winter does not automatically translate into a surge of electricity consumption for cooling. Even though air conditioning demand is starting to pick up in some regions, it has not yet reached a level that would drive up gas consumption or push gas stations to operate at higher loads. This lull has provided a kind of pause for Europe’s gas market. He notes that a very warm winter kept gas locked away in underground storage, contributing to a calm in trading and a more balanced market as temperatures moderated.
Looking ahead, Yushkov raises a cautionary note. If the droughts seen in previous years recur, the current calm could quickly turn into what he characterizes as a strategic trap for the market, with storage levels and supply dynamics becoming more fragile under dry conditions and high temperatures again driving demand sooner than expected.
Another voice in the mix, Vladislav Antonov, previously a financial analyst at BitRiver, offers a distinctive forecast. He suggests that by the end of May into the early days of June, foreign exchange movements could push natural gas prices down toward the 300 dollar mark per thousand cubic meters, signaling continued volatility and potential for further downward adjustment as market sentiment shifts and seasonal factors evolve.