European Natural Gas Prices Plunge 10%
European natural gas prices fell 10% to €93/MWh on Monday, their steepest decline since March 10, as renewed hopes for US-Iran negotiations eased concerns over disruptions to Middle East energy supplies. Iran’s supreme leader reportedly authorized the government to pursue talks, following reports that President Donald Trump wanted to give diplomacy more time. The decline reversed part of last week’s rally, which pushed prices above €100/MWh for the first time since 2022, with geopolitical risk accounting for a significant premium. However, supply concerns remain as colder weather approaches and storage levels are below target. Germany’s gas reserves were just 61.03% full on November 2, missing the government’s 70% goal, while EU-wide storage stood below 75%, a historically low level. Forecasts point to temperatures 2C to 4C below normal in major German cities, with freezing conditions possible in southern and eastern regions.
European natural gas prices fell 10% to €93/MWh on Monday, their steepest decline since March 10, as renewed hopes for US-Iran negotiations eased concerns over disruptions to Middle East energy supplies. Iran’s supreme leader reportedly authorized the government to pursue talks, following reports that President Donald Trump wanted to give diplomacy more time. The decline reversed part of last week’s rally, which pushed prices above €100/MWh for the first time since 2022, with geopolitical risk accounting for a significant premium. However, supply concerns remain as colder weather approaches and storage levels are below target.
Germany’s gas reserves were just 61.03% full on November 2, missing the government’s 70% goal, while EU-wide storage stood below 75%, a historically low level. Forecasts point to temperatures 2C to 4C below normal in major German cities, with freezing conditions possible in southern and eastern regions.