why are gas prices falling?

Gas prices have fallen back below the 100 euros per megawatt-hour mark in recent days, compared to 300 euros this summer. Thanks to the mild weather throughout Europe, we consume less gas than expected, especially for heating. In addition, there is wind, the wind turbines are running at full speed. IThere is also the world economy which slows down with the prospect of recession, industry tends to produce less. All of this lowers the demand for gas. While on the other side, the offer is abundant. Gas stocks have been well filled in anticipation of the winter and European reserves are 92% full. And even, it is the paradox: we no longer know where to store the gas that arrives, so dozens of cargo ships full of fuel are currently queuing up in Spain, in the United Kingdom to unload their cargo. They make circles in the water while waiting for the tanks to empty.

France seeks to cap the price of gas at European level and the discussions on this subject are tense with our German neighbors who are against it. This overflow of gas also gives them arguments: what’s the point of capping the price of gas, since it’s going down on its own?

Emmanuel Macron will receive the German Chancellor tomorrow evening. He will try to convince him but it is not won. Last week, European leaders agreed on a roadmap to curb energy prices, but it remains an empty shell that needs to be filled, to find the terms and therefore compromises.

Stocks are at their highest for this winter, but what next? The French will not see this drop in gas prices on their bill immediately because the contracts for companies and individuals are calculated over the medium and longer term. MEven if prices tend to fall, they remain very volatile, very fluctuating on the markets. HASBe careful, gas prices are still much higher than at the start of the year, before the war in Ukraine, the conflict is setting in and suppliers are still worried. OHaven’t filled the stocks for winter 2022-2023, but what about 2023-2024?