Why has the price of gas in the EU dropped by almost 40 percent in a couple of weeks?

The European Union's underground gas storage facilities (UGS) are now almost 83 percent full.

According to Andreas Schroeder, head of energy analysis at ICIS, the most optimistic scenario for Europe is a drop in consumption to 15 percent. In this case, at the end of the winter the storage facilities will be filled to about 45% of their capacity, which is "slightly higher than in recent years".

Such level of filling of UGS facilities "will serve as a buffer" if Russia does not resume gas supplies. It would also allow the storage season to begin for next winter without increased demand. "This scenario will not prevent a recession, as prices will continue to rise, but it will minimize the impact of the energy crisis," the ICIS expert believes.