Europe has been stockpiling gas for winter to reduce its reliance on Russian supplies
While, today the benchmark European natural-gas prices fell as fears of a winter supply crunch abated.
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Benchmark European natural-gas prices fell as fears of a winter supply crunch abated!
— The_Journalbiz (@the_journalbiz) September 2, 2022
Futures for gas at a trading hub in the Netherlands, the benchmark in northwest Europe, fell over 11% to €216.04 a megawatt-hour.
The price in euros is roughly the same number in dollars because the currencies are near parity.
The reprieve comes as a steady build in European gas stockpiles has lessened the chance that Russian supply disruptions will drive prices higher, analysts say.
The European Union had reserves of gas equal to 78% of storage capacity on Aug. 24, according to Gas Infrastructure Europe, making it likely it will meet its 80% target for Nov. 1 two months early.
- How much gas Europe will continue to receive from Russia is unclear
Russia shut down its main artery for natural gas to Europe for maintenance this week. Prolonged disruptions and shortages could trigger rationing and likely tip the continent’s already struggling economy into a recession.