Record drop in gasoline prices
Across Europe, natural gas prices declined three times over the winter, landing around $515 per 1,000 cubic metres. This assessment follows calculations and futures data from the London ICE exchange, as reported by the news agency. The decrease is attributed to well-stocked storage facilities and unusually mild winter conditions that reduced demand.
By late winter, futures contracts showed a dramatic slide. From roughly $1,550 per 1,000 cubic metres at the end of November, prices fell to about $515 by February 28, a threefold drop from the high at the season’s start. The sharpest decline occurred on February 28, when prices dipped to $505, a level not seen since the last days of August 2021.
Journalists noted that average gas prices in December hovered around $1,272 per 1,000 cubic metres, then moved to about $712 in January and approximately $583 in February. By mid-December, European temperatures ran below seasonal norms, but subsequent weeks brought a sustained warming trend across the region.
European Union underground gas storage facilities reached a historic winter peak of 61.65 percent capacity, about 21.61 percentage points above the five-year average. Standby stocks were reported to contain roughly 66.94 billion cubic metres. The storage level was cited as a factor in moderating price volatility, though storage capacity alone does not guarantee smooth delivery through autumn and winter, according to gas market observers and industry spokespeople.
On a subsequent Friday, European gas prices continued to ease, marking the first notable decline since August 23, 2021, with prices around $500 per 1,000 cubic metres. Futures data from the London ICE exchange, cited by national news agencies, supported this trend.
April futures for the TTF index, a major European gas hub in the Netherlands, showed prices around $497.3 per thousand cubic metres. A year earlier, European gas prices had been roughly 3.7 times higher, near $1,900 per thousand cubic metres, underscoring the volatility that has characterized European energy markets in recent years.
Open sources indicate that gas prices in Europe have risen from spring 2021 onward. By late summer, TTF measures exceeded $600, and by autumn they approached $1,000. At one point, prices surged to a record $3,892 per thousand cubic metres amid fears of disrupted imports of Russian energy following a government operation in Ukraine early last year.
Medvedev’s predictions
On August 22, Dmitry Medvedev, then First Vice-President of Russia’s Security Council, commented on the rapid escalation of gas prices in Europe. He described a situation where gas costs reached high levels and speculated about future price trajectories, a stance that drew attention in both European and North American energy circles. In his Telegram posts, Medvedev discussed potential price paths for the remainder of the year and speculated about further increases, touching on questions about political and market influences on energy costs.
In a subsequent message directed at national leaders within the European Union, Medvedev projected even higher price scenarios for gas, suggesting a need to reassess expected prices for 2022. He accompanied his posts with a provocative illustration, underscoring his commentary with a stark visual metaphor often interpreted as a commentary on energy security and affordability.
These discussions occurred against a backdrop of ongoing energy policy debates in Canada and the United States, where market watchers continue to monitor price signals, storage capacity, and the potential impact of sanctions, geopolitical developments, and weather patterns on North American energy markets. In North American contexts, observers note that storage behavior and market liquidity play critical roles in pricing dynamics, with seasonal swings and policy developments shaping consumer costs in both countries.