Watch the temperature
Oct 25, 2022
There is relief in the European gas market: the index of the Dutch spot gas price per MW hour has fallen a stunning 92% since its high reached in August this year! High temperatures in October enabled for fuller-than-usual reserves for the upcoming winter. Also the prospect of LNG arrivals combined to lower demand in a slowing economic environment should help keeping the gas price low. Discussions on an EU price cap on gas are advancing. The impact of an easing of the energy crisis should not be underestimated and it could even make Europe avoid a recession. It is however premature to cry victory as we need to watch the weather forecast closely over the coming weeks.