In Europe, gas prices almost reached $500 per thousand cubic meters. Although it is not the expected $3,500 per thousand cubic meters, the likelihood of an energy collapse is rising as winter approaches.
According to the official data from the London-based exchange ICE Futures Europe, October futures approached the level of $500 per thousand cubic meters at the end of September. However, in October, the fuel lost over 28% in just a few days. The spot price nosedived below $300 per thousand cubic meters, hitting a new 2-month low last seen in early August. The day-ahead contract declined to $228 per thousand cubic meters. Notably, just several weeks ago, it exceeded $490. Analysts pinpointed that the price has been following the same trajectory for the second year in a row. Since October is the first month of a new gas year, prices in this period are lower than in September. However, the key reason is the relatively warm weather. Later, the temperature will fall, thus launching a heating period with full gas reserves.