European gas prices fell the most since April, with Dutch front-month futures plummeting by 16%. This news comes as Germany announced that its gas stores had been filled up quicker than expected, with its October target of 85% expected to already be met next month.
This plunge in prices comes as a major relief to consumers, particularly after Dutch front-month futures prices surged by almost 40% last week. It also provides relief in the midst of an impending recession, with numerous European nations experiencing their highest rates of inflation in decades. Gas futures continue to trade at six times higher than a year ago.
Increased gas supplies put Europe in a better position to face the coming winter months, particularly as another supply cut is threatened as Russia’s Gazprom PJSC carries out maintenance on the Nord Stream pipeline starting Wednesday. But even as storage targets are on route to being reached, Germany risks not being able to see out the winter months if Russian flows are halted.
As a result of this threat, several preventative measures are being put in place with Europe looking to reduce gas consumption this winter by 15%.