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Gas prices in Europe dropped by almost 60 percent

Gas prices in Europe dropped by almost 60 percent Photo: Gas prices to fall by 60% in Europe in 2023 (GettyImages)

The prices of gas in Europe have fallen by almost 60% in 2023 and an additional 12% this year. They continue to decline due to record gas reserves and renewable energy sources, according to Bloomberg.

It is reported that despite the escalation of the Palestinian-Israeli conflict in October of last year and the resulting challenges with international shipments through the Red Sea, prices for liquefied natural gas in Europe continue to decline.

This phenomenon is explained by record gas reserves, extensive investments in the development of renewable energy sources, and modest economic growth that limits energy demand in major industrial states.

Overcoming the crisis, current European prices are trading below 30 euros per megawatt-hour, approximately one-tenth of the peak levels in 2022.

"This is the second winter that Europe is experiencing without Russian gas. The fact that there is now a precedent — the 2022-2023 winter that went without any issues — is helping to calm traders’ nerves," said Kim Fustier, the head of the European oil and gas research division.

Russian gas in Europe

Although the EU has gradually reduced its dependence on Russian energy resources since the Russian invasion of Ukraine in February 2022, it continues to receive gas from Russia.

Some countries in the European Union continue to import gas from Russia despite the war in Ukraine. Hungary is among the countries that continue to do so. Additionally, last year, Spain increased its import of Russian gas by 35%.

However, deliveries are still decreasing. According to Reuters, Gazprom's gas supply to Europe in 2023 has decreased by more than half.