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Gas Price in Europe: Dips Below 40 Euros, Winter Tests Energy Security

The gas price in Europe continues to slide, reaching new lows on the Amsterdam energy market. According to the latest news, the gas value initially drops to 41 euros, with Ttf futures marking a fourth consecutive session of decline, falling 5.4% to 40.4 euros per megawatt-hour.

Gas Price Below 40 Euros: A November Downturn

The November decline has helped absorb the price surge generated by Hamas’s attack on Israel, but weak demand, high storage levels, and increasing flows of liquefied natural gas continue to influence the market. However, experts in the industry believe that Europe will smoothly navigate through winter.

IGI Index Downward

The Italian Gas Index (IGI) for November 30 shows a decline to 41.73 €/MWh, down from the previous day. This index, calculated by the Gestore dei Mercati Energetici (GME), provides an overview of natural gas market transaction prices.

Winter and Gas Market: A Challenge Ahead

While gas prices are falling, the arrival of winter poses new challenges to Europe’s energy security. Cold temperatures are spreading across the continent, testing energy systems. Forecasts indicate cold weather for much of Europe in the coming weeks.

Gas Price: Full Storages, Yet Uncertainties Persist

Despite nearly full natural gas reserves in Germany, France, and Italy, the International Energy Agency warns that significant uncertainties remain before the upcoming heating season. Europe’s maximum reserve capacity covers less than half of its winter consumption, raising doubts about supply during a cold winter.

Gas Price: LNG and Global Volatility

The increase in Liquified Natural Gas (LNG) imports makes Europe more vulnerable to the volatility of this market. The total share of imported LNG has risen to 40%, with 13% coming from Russia. Geopolitical volatility and concerns about supply shortages contribute to uncertainty.

Future Predictions and Risks

Analysts suggest that gas prices may fluctuate in the coming months, but geopolitical uncertainties and the growing dependence on LNG keep the market unstable. Energy security and the impact on European industry prices remain central themes.

Conclusions: Perspectives and Alerts

With current challenges and uncertainties, forecasts indicate an asymmetric upside risk to gas prices in Europe. Experts warn that higher and more volatile prices could erode industry competitiveness and influence inflation.

In conclusion, as gas prices slide below 40 euros, winter challenges and dependence on LNG present Europe with a complex and ever-evolving energy reality.


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