Gas prices in Europe continue to fall due to ample inventories

Natural gas prices have fallen in Europe as warmer-than-normal winter weather has reduced demand and eased pressure on the region’s energy systems.

The benchmark futures fell 5.2% after the open in rise on Tuesday. Forecasts show that the unusually mild temperatures will remain in all of continental Europe next week.

The climate has eased concerns about power outages and rationing as supplies remain fuller than the media and there’s less risk of them depleting to dangerous levels during the winter.

This takes place while Europe has been in able to add more gas to storage in recent days in amidst a combination of limited heating needs and usually low consumption during the holiday season, according to “Bloomberg” and visualized by “Al Arabiya.net” .

Germany is expected to produce electricity from nearly wind power on Wednesday recordaccording to Bloomberg data, reducing the need for gas to produce electricity.

Dutch first-month gas futures – the European benchmark – fell 2.6% to €75MWh this morning in Amsterdam. The equivalent contract in the UK fell by 3.3%.

Prices recorded a monthly decline record in December, bringing relief to consumers and governments after a difficult year when levels escalated record during the summer. However, they are well above typical levels for this time of year and any disruption in supply could tighten the market again.

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