Gas prices in Europe fell below $300 per thousand cubic meters for the first time in two years

For the first time since May 20, 2021, gas exchange prices in Europe fell below the level of $300 per thousand cubic meters, according to data from the ICE exchange.

At the TTF hub in the Netherlands, June gas futures fell 3.3% yesterday to $297.06 per thousand cubic meters, or €26.8/MWh, which corresponds to the June 2021 level. The reason for the decrease in prices was the excess supply, including LNG, significant reserves, reduced demand on the continent and forecasts of a hot summer.

In addition, some EU countries held the first joint tenders for the purchase of gas, and also increased the share of wind generation in electricity production, which also increased the pressure on quotations.

Lower gas prices help lower the cost of mineral fertilizers.

On the global market of fertilizers, prices for the week decreased by 1.6% (1.5% in the previous week) due to a decrease in the cost of mixed (-2.6%) and nitrogen (-0.5%) fertilizers. In general, prices in May decreased by 34.3% compared to prices in May 2022.