Warm weather and high storage drive 17% decrease in European gas prices for 2024

The average gas price in Europe for the year 2024 fell by 17%, reaching around $387 per 1,000 cubic meters, according to data from the London ICE futures exchange.

The main factors behind this decrease were warm weather, high storage levels, and a lack of increased demand for gas in the EU, Caliber.Az reports, citing Russian media.

For the entirety of 2024, the gas price in Europe dropped by approximately 17%. The average price at market trading was around $387 per 1,000 cubic meters, compared to $464 the previous year and $1,400 in 2022.

On December 29, 2023, gas futures were trading at about $367 per 1,000 cubic meters, and by November 29, 2024, they had risen to $521. However, by December 31, 2024, trading closed at around $539 — 3.5% higher compared to the end of the previous month and 47% higher than the close of 2023.

The increase in price towards the end of 2024 was driven by expectations of the cessation of Russian gas transit to Europe through Ukraine.

In December 2023, the average gas price in Europe was about $408 per 1,000 cubic meters, but it gradually decreased until April 2024: in January, it fell to $337 (53% lower year-on-year), in February to $288 (-51%), and in March to $302 (-38%).

Prices then began to rise again: in April, they reached $320 (-33%), in May $357 (+0.2%), in June $384 (5% higher year-on-year), in July $366 (+9%), in August $437 (+10%), in September $416 (-0.3%), in October $456 (-11%), in November $491 (-4%), and in December $489 (+20%).

By Tamilla Hasanova