Europe: gas market may enter red

According to Bloomberg, after a sharp drop in demand and rising stocks have pushed prices, negative prices could reach gas on the European market. Last Friday (22), for example, in the reference market for gas in Europe, the price for the next day of gas fell 20%, to 2.50 euros per megawatt-hour, equivalent to less than 1 dollar per million thermal units (BTU). Spot prices in the UK have also fallen by u

p to 30%. Dutch and British gas prices have plummeted due to weak demand amid coronavirus isolation measures and strong renewable production, which add to an already oversupply market with little available storage space

"If supply continues with this strength until inventories are full, we may possibly see negative prices at some point, as there is no sign of improvement on the demand side," said one operator.  


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