The European natural gas price has gone below the Russian invasion levels while oil prices are still higher. Unsurprising warm weather in Germany has also helped reduce consumption but the most important thing is that Germany is refilling its gas storage constantly. This is an indicator that Germany may have enough constant gas inflow to keep the price low.
Another factor that needs to be considered right now is that Gazprom needs to desperately find new clients to replace European revenues and this will put more downward pressure on the price. The intensive work done by the EU and EU states to scramble for natural gas suppliers has led to a situation where the gas shortage problem is turning into an accumulation process of excessive supply. Emmanuel Macron should contribute to this situation by increasing the gas infrastructure and helping find new suppliers instead of whining like a little prick about US profits or experimenting with delusional hydrogen pipelines in times of crisis.
Meanwhile, Malta is losing money on its gas purchases after betting that oil would go lower than gas in relative terms to where they stood before the war – the exact contrary has happened. Malta’s bet was also preconditioned by the bias of the Labour Party as its officials genuinely thought that Russia would win its energy war against Europe.