Liquefied natural gas (LNG) prices in Europe fell by almost 60% in 2023 from their peak in 2022, and they continue to decline mainly due to record gas reserves and renewable energy sources, Bloomberg reported, according to TASS.

Despite the escalation of the Palestinian-Israeli conflict in October last year, and the associated disruptions to international supply via the Red Sea, LNG prices in Europe continue to fall. Bloomberg attributed the occurrence to record gas reserves, broad investment in renewable energy, and slow economic growth, which limits energy demand in large industrialized countries.

However, there is a risk that the decrease will end and European countries as well as Japan, the United States, and China may face another crisis.

"Just by looking at prices, it seems that the crisis is over," said Balint Koncz, head of gas trading at MET International in Switzerland. "However, we are now reliant on global factors, which can change rapidly."