10/26/2022

Why Natural Gas Prices in Europe Are Suddenly Plunging

A combination of factors has lead to the decline - for now

The war in Ukraine is raging, Russian natural gas exports to Europe are dwindling and the winter heating season is approaching. That would seem like a recipe for higher prices, yet the cost of the fuel, which is vital for heating homes and for powering electricity plants and industry, has been plummeting.

The benchmark European price of natural gas this week fell to a level that is more than 70 percent below its record high in August. One of the main reasons for the plunge in prices is that Europe, at least for now, has all the natural gas it needs.

That is because over the summer, Europe went on a global buying spree as Russia, its longtime main supplier, reduced its flow of natural gas.

Please select this link to read the complete article from The New York Times.