Gas prices across Europe showed a dramatic drop during the first half of 2023, with the cost hovering around 425 dollars per thousand cubic metres. This analysis relies on data and calculations sourced from the London ICE exchange, as reported by TASS.
In December 2022 the average European gas price stood at roughly 1,272 dollars per 1,000 cubic metres. Over the following six months, prices declined steadily. January saw a price of about 712 dollars, down 21 percent from the previous year. February dropped to 583 dollars, a 41 percent year‑over‑year decrease. March brought a further slide to about 488 dollars, a decline around 60 percent from the prior year. In April the price recovered slightly to 477 dollars, still down 55 percent. May recorded a price near 357 dollars, marking a 65 percent year‑over‑year fall, and June ended at roughly 366 dollars, about 70.5 percent lower than the prior year. The trajectory reflects a substantial easing in European gas costs through late winter and spring, contrasting with the sharp spikes seen earlier.
Analysts have attributed the easing to several factors. Record revenues from fuel markets, a milder winter, and higher storage levels all contributed to softer prices. European Union member states executed rapid measures to curb gas consumption and bolster storage utilization, helping to dampen price volatility and secure more predictable supplies for the season ahead. These dynamics illustrate how storage readiness and demand management can influence wholesale gas economics across the region.
Gazprom has cautioned that there is no guarantee nature will offer a similar gift next winter. The ongoing withdrawal of Russian gas for political reasons could complicate the ability to fill underground storage facilities in Europe, potentially affecting supply stability and price movements in the coming months.
June commentary from Igor Yushkov, a lead analyst at the National Energy Security Fund, noted a shift in prices as gas demand rose in Asia during the summer period. He highlighted that the start of the season often brings stronger consumption signals that can push prices higher, alongside broader market trends that influence European pricing.
Former Fitch Ratings analysts have suggested that European gas prices could continue to fluctuate and may fall sharply in the 2023–2024 window under certain market conditions. The overall picture remains sensitive to global demand, seasonal weather, and geopolitical developments that affect supply routes and storage strategy across the continent.