Exchange-traded gas prices in the European Union fell below the mark of $2,500 per thousand cubic meters. The cost of October futures on the TTF hub in the Netherlands collapsed by 18.5% (from the highs of August 31), reaching €232.5 per 1 MWh, or $2,445 per thousand cubic meters, according to the exchange ICE.

Why are gas prices higher in Europe?

At its peak on August 31, the gas price went up to nearly €284 per 1 MWh, exceeding $2,900 per 1,000 cubic meters. The rapid growth in early trading occurred against the background of the announcement of a complete stoppage of gas pumping by Gazprom through the Nord Stream pipeline.

In his turn, Alexey Miller, the head of Gazprom, said today at the conference call devoted to the Oil and Gas Industry Workers Day that gas prices in Europe may exceed $4,000 per 1,000 cubic meters at the peak of the autumn-winter season.

Earlier, we reported that Goldman Sachs recommends investing in commodities.