The price of gas changes trend and drops 14%, according to GasIndustrial

The average price in October was 89.70 euros/MWh, which represents an increase of 38.7% compared to the previous month and 567.4% year-on-year.

A ship carrying liquefied gas.

The price of gas has changed its trend between October 23 and November 5 and has fallen by an average of 14.2% in the European wholesale markets, according to the latest bulletin of GasIndustrial.

Specifically, the average price in the European markets stood at 76.85 euros per megawatt hour (MWh), almost 13 euros less than in the previous fifteen days.

The decrease in the price of Japan Korea Marker (JKM) “It has caused a general relief in the prices of all the European gas ‘hubs'”, explains GasIndustrial.

Furthermore, the authorization of Russian President Vladimir Putin, a Gazprom to increase the flow of gas to Europe -once the country finishes filling its warehouses- has generated downward pressure on the markets.

Peak daily gas prices have been seen in the Spanish MIBGAS, which has reached 93.41 euros/MWh, while the minimums have been in the NBP English (56.07 euros). “Even so, it stands out that all the European ‘hubs’ continue to be well above the formula indexed to Brent”, highlights the bulletin.

The average price of MIBGAS in October was €89.70/MWh, which means an increase in the cost of 38,7% compared to the previous month and a 567.4% year-on-year. Meanwhile, the Dutch TTF, the reference for Europe, its average price in October was 89.52 euros/MWh, 0.2% cheaper than that of MIBGAS.

On the other hand, in October, the Brent it rose 12.3% from the previous month and 107.9% year-on-year. This period has been characterized by the meeting of the Organization of the Petroleum Exporting Countries (OPEC) of November 4 and “the pressure from different world powers to the oil cartel for an increase in production greater than expected for the coming months,” GasIndustrial emphasizes.