Europe's natural gas price fell below €50 for the first time in nearly a year and a half, as mild winter conditions curbed heating demand.

European Gas is now almost seven times lower than the record level following the attack on Ukraine by key gas producer Russia nearly a year ago. The price of Dutch TTF gas is below €50 for the first time since late 2021.

"Europe gas prices have dropped 50 percent since November thanks to unusually hot weather and quiet competition with China while the zero Covid strategy is in place," said UniCredit analyst Edoardo Campanella.

China lifted its pandemic restrictions in December, but that has yet to boost its appetite for gas.

Record profit statement from British energy producer

After the outbreak of war in Ukraine, Western countries were forced to procure gas from outside of Russia, hit by sanctions, and Norway became the main supplier to Europe.