For the past seven months, the Dutch TTF natural gas futures have been steadily decreasing and have now reached levels that were last observed in 2021, indicating a more robust recovery in the energy market. Photo: Shutterstock

For the past seven months, the Dutch TTF natural gas futures have been steadily decreasing and have now reached levels that were last observed in 2021, indicating a more robust recovery in the energy market.  Photo: Shutterstock

Dutch natural gas futures, a benchmark for gas prices in Europe, have continued a downward price spiral and currently trading well below February 2022 prices. The low prices have led to an increase in bookings in recent weeks.

Following the Russian military aggression in Ukraine starting in February 2022, EU gas supplies initially came under stress, causing prices to increase nearly fourfold from €85 per megawatt hour (MWh) in January 2022 (average) to €339 per MWh on 26 August 2022. However, since then, prices have continued to spiral downward. As of Monday 20 March 2023, Dutch TTF (Title Transfer Facility) futures were trading at around €40 per MWh, the lowest level since August 2021 and already a 45% decrease from January 2023.

Supported by relatively mild weather (the 12-month average up to March 2023 was ) and a higher (56% as of 19 March 2023) compared to the same time last year (26% in March 2022), market concerns have been reduced.

Recent weeks have seen an increase in the volume booked by traders, indicating their willingness to take advantage of the low prices.

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