Gas prices in Europe fall below $1,400 for the first time since June 24

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The price of natural gas in Europe fell below $1,400 per 1,000 cubic meters. m for the first time since June 24. This is evidenced by trading data on the London ICE exchange on October 17.

At the start of trading, futures contracts due in November fell 6.4% to $1,333 per 1,000 cubic meters. m.

Before that, on October 14, gas futures traded at $1,424.2 per 1,000 cubic meters. m.

On October 10, gas prices in Europe fell below $1,500 per 1,000 cubic meters. m for the first time since June 29. According to analysts, the decrease in gas prices occurs as reserves in European underground gas storages (UGS) approach the maximum and against the backdrop of warm weather.

So, on October 4, Arthur Meinhard, head of the analytical department for global markets at Fontvielle Investment Company, explained to Izvestia that mild weather and sufficient gas reserves reduce the fears of the EU member states about the shortage of the resource, which also affects prices.

At the same time, despite the decline, current gas prices are several times higher than last year, when gas prices were at a record level. According to Anton Sviridenko, director of the Stolypin Institute for Growth Economics, the process of changing supply chains, energy saving, finding new suppliers could affect the cost.

Christina Lu, a columnist for the American magazine Foreign Policy, also pointed to this on September 20. She noted that the cost of energy is 10 times higher than the average for the past 10 years. The journalist added that a struggle for survival could unfold in Europe against the backdrop of restrictions on gas supplies from the Russian Federation and the ensuing energy crisis.

On April 13, Russian President Vladimir Putin said that the refusal of a number of states from normal cooperation with Russia, as well as from Russian energy resources, hit Western countries: prices are rising everywhere, inflation is going through the roof.

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