European natural gas futures have dropped to their lowest level in five weeks, influenced by a shift in weather forecasts that eases pressure on dwindling fuel supplies. This decline, reported by Bloomberg, comes as gas futures fell by 6.9% following a decrease in gasoline prices in the United States, also attributed to warmer temperatures.
The fluctuations in gas prices have been driven by a combination of weather conditions, production disruptions, and geopolitical risks. Currently, gas storage levels in the European Union are below 34%, marking the lowest since the crisis of 2022. In Germany, which is the largest market in the region, storage is even lower, at under 24%.
The Dutch gas benchmark futures have decreased to €31.07 per megawatt-hour.
In Ukraine, the impact of these price changes is expected to be minimal for residential consumers. According to Volodymyr Omelchenko, director of energy programs at the Razumkov Center, fixed pricing under special obligations means that fluctuations in European gas prices will not affect household bills. Tariffs for district heating companies and heat producers for budget institutions will also remain unchanged.
Omelchenko noted that while the commercial sector, which operates under market pricing, may see some effects, the overall impact on Ukraine’s energy landscape is likely to be limited. He emphasized that Ukraine’s critical dependence on gas imports and reduced domestic production due to attacks on extraction facilities could create some challenges, but these are not expected to be significant.
European natural gas prices have reached a five-week low, primarily due to changing weather forecasts. However, this decline is not anticipated to affect gas tariffs for residential consumers in Ukraine, as fixed pricing remains in place.
Source: Bloomberg