Warm winter small factor in the game between Russia and Europe

Energy has become a major card in the game between Russia, the United States and other Western countries after the Russia-Ukraine conflict broke out in February last year, which is not surprising given that European countries have long relied on Russia for their energy needs.

It was natural that Russia reduced its gas supply to Europe after the West slapped a series of economic sanctions on it. The destruction of the Nord Stream gas pipelines last September completely severed Russia's energy artery to Europe, making people wonder how European countries would cope during the 2022 winter. Much of the continent was in the grips of soaring energy bills, forcing residents to go back to "pre-industrial days", using coal and wood. However, the arrival of an unexpectedly "warm winter" in 2022 changed the landscape, mitigating Europe's energy, inflation and economic troubles.

The European Union's Copernicus Climate Change Service reported that 2022 was the second-warmest year on record in Europe. Benchmark gas futures on the Dutch Title Transfer Facility reached €345 ($364.1) per megawatt-hour in August 2022, but fell to around €70 at the start of 2023, the lowest level since the outbreak of the Russia-Ukraine conflict.