European gas prices fall to lowest since Feb 21, before Ukraine war began

Lower gas prices are also a relief for the European economy, which is pressured by high inflation rates

European natural gas prices started the new year declining as mild weather curbed demand.

Benchmark futures dropped as much as 7.9% to the lowest level since February 21, extending three weeks of net declines.

Weather forecasts point to temperatures above seasonal norms for most of the region in the next two weeks, which will help Europe avoid depleting its stocks too soon as it goes through the winter.

After a year of extreme volatility — with energy costs reaching record highs amid Russia’s war in Ukraine — the market starts 2023 less stressed. Gas prices declined about 47% in