Currently, European natural gas inventory has reached 91%, while German stocks are 95%. Natural gas prices in Europe have fallen, trading at about 130 euros per megawatt-hour, and fell to 116 euros on October 18, 2.5 times lower than the price at the end of August.
Bailihao Global believes that the current sharp drop in European natural gas prices may be inseparable from the following reasons:
First point, Europe vigorously expands its natural gas source channels. For example, the pipeline gas of Nigeria , Algeria , Azerbaijan , and the United States, Canada, Qatar 8 liquefied natural gas .
The second point is to reduce the use of natural gas and limit the price of natural gas, such as lowering the winter heating temperature by 1 to 2℃, restarting coal-fired power plants to generate power. EU imposes an upper limit on natural gas prices and imposes subsidies on the part of rising civilian natural gas prices. At the same time, the energy policies actively promoted by many Western countries have restricted the price increase of Russian gas.
The third point is that Russia and Türkiye reached a natural gas transfer agreement. After the increase in gas transmission volume of the Turkish stream natural gas pipeline, the gas supply capacity has approached " Beixi-1". With Türkiye as a natural gas transit station, the pressure on Europe to obtain natural gas has been reduced a lot, and a decline in natural gas prices is inevitable. Of course, coal power generation recovery, nuclear energy, wind energy and other new energy sources provide supplements.
Bailihao Global Warm Reminder: The above content and views are provided by the third-party cooperative platform think tank, for reference only and do not constitute any investment advice. Investors act on this basis at their own risk.
