Global Natural Gas Prices Fall to US$2.55 per Mmbtu (Friday, May 31, 2024)

Global natural gas prices fell on Friday, May 31, 2024, trading at US$2.55 per mmbtu. This is lower than the previous day's price of US$2.57 per mmbtu. This current situation contrasts with the previous upward trend in global natural gas prices.

Over the past week, global natural gas prices slowed by 4.49 percent, with an average daily transaction price of US$2.6 per mmbtu. According to Katadata Insight Center (KIC) calculations, year-to-date (YTD), global natural gas prices have decreased by -3.41 percent. Compared to this year's highest price of US$3.31 per mmbtu, global natural gas prices have fallen by 23 percent.

Annually, the average global natural gas price trade over the past five years has shown a downward trend. Meanwhile, monthly price monitoring shows a contraction in transactions over the past 12 months. The highest average monthly price for global natural gas was recorded in October 2023 at US$3.14 per mmbtu.

The Title Transfer Facility (TTF) in the Netherlands is a virtual trading point for natural gas. This virtual facility allows numerous traders to engage in futures and physical gas trading.

Previously, Russia had reduced gas flows through the Nord Stream 1 pipeline to Germany to only 20% of total capacity. This led European countries to scramble for supplies to maximize gas storage for the winter and to seek alternative sources.