European Natural Gas Prices Down 58% in 2023

European natural gas futures tumbled 58% to €32 per megawatt-hour in 2023, after an 8.5% rise in 2022 due to persistently low demand, allowing the region to maintain healthy gas reserves.

As of December 27th, gas storage levels in the European Union stood at 87%, with Germany at 90.8%, France at 84.1%, and Italy at 83.4%.

Looking ahead, Northwestern Europe anticipates a warm start to early 2024 with above-average temperatures, leading to diminished power demand and lower natural gas consumption, following a warm December.

Also, a challenging economic outlook suggests limited potential for a significant increase in industrial consumption in the near future.