CESCE, Country Risk
The price of the referenced gas in Europe, the Dutch TTF, fell this week below €25 per MWh, the lowest level since May 2021.
![[Img # 52744]](https://empresaexterior.com/upload/images/05_2023/1138_gas_cr.jpg)
So far this year the price of gas has plummeted by more than 60%. This behavior is due, to a large extent, to the drop in demand in the old continent, as a consequence of the sluggishness of economic activity, the greater weight of renewable energy in electricity generation, and favorable weather conditions during the winter season. Furthermore, investment in liquefied natural gas infrastructure has contributed to balancing the European gas market after the cessation of imports from Russia. Some estimates suggest that the price could continue to decline to €20 MWh in the coming months, a reduction in price that will contribute to softening inflationary pressures.
Likewise, the lower tension than initially expected in the gas market is facilitating the storage process. Currently reservations in Europe They exceed 67%, well above the average for the last five years. For its part, the collapse of the price represents a setback for the interests of Russia. If this scenario continues, Moscow It would lose one of its main tools to coerce and project its influence abroad.
Source: CESCE
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
