Natural gas prices stable thanks to mild winter - conflict in the Middle East only has short-term effects

Natural gas prices stable thanks to mild winter - conflict in the Middle East only has short-term effects

Gas prices have recently risen for consumers, even though natural gas storage facilities in Germany are currently much fuller than they were at this time in previous years. One reason for the otherwise stable situation is the lower consumption values ​​due to the mild winter. In addition, there was a short-term increase in futures contracts such as TTF on the energy exchange due to the Middle East conflict, but this has already calmed down.

There is currently no shortage of natural gas on the global market, which means that the price for natural gas is around 20 percent below the previous year's level. The weak economy in Germany has led to a decline in energy demand, particularly in industry. China is meeting its increasing needs with Russian pipeline gas and is now Vladimir Putin's most important gas customer.

Gas deliveries to Germany take place mainly via pipelines from Norway and via port terminals where liquefied natural gas (LNG) is landed. Traditional deliveries from the Netherlands have been stopped due to damage. Much of the LNG comes from US fracking gas production. Although a major gas shortage due to the Middle East conflict is currently unlikely, supplies from the Emirate of Qatar could play a role in the future.

The situation on the gas market remains dynamic despite regional conflicts and global changes in demand. The evolution of consumer gas prices depends on various factors, including political events, economic indicators and global energy strategies. The exact course and impact on end consumers remains to be seen, while players in the natural gas market must adapt their strategies to the new circumstances.