European Natural Gas Prices Extend Losses

European natural gas prices extended their decline, falling to €80/MWh, their lowest level in a month, amid growing hopes for a diplomatic resolution to the Middle East conflict. President Donald Trump said on Monday that there was “positive momentum” toward ending the conflict and that the war was effectively over militarily. European gas prices remain more than double their pre-conflict levels, as disruptions to Gulf LNG exports, which accounted for around a fifth of global supply, leaves the gas market tight market ahead of winter. EU gas storage is below 73%, well below the five-year seasonal average of 90%, while Germany’s inventories are below 60%. Colder weather, along with low wind and solar generation, has accelerated storage withdrawals, while Norwegian pipeline flows have remained below capacity due to unplanned outages. The tight supply situation has raised the prospect of intense competition with Asia for cargoes.

European natural gas prices fell to around €82/MWh, their lowest level since October 9, extending a 17.7% loss in the previous week, as hopes of a diplomatic resolution to the Middle East conflict grew. President Donald Trump said it’s highly unlikely he will order extensive strikes on the Islamic Republic, although Secretary of State Marco Rubio cautioned that negotiations may not deliver rapid progress. However, prices remain well above their pre-war levels, as the disruption of Middle Eastern LNG exports, which previously accounted for around a fifth of global supply, leaves Europe facing a tight market ahead of winter. EU gas storage is below 73%, well below the five-year seasonal average of 90%, while Germany’s inventories are below 60%. Colder temperatures and weaker wind and solar generation have increased withdrawals, while Norwegian pipeline supplies remain constrained by outages. Competition for LNG is also expected to intensify as Asian buyers increase spot purchases.

EU Gas decreased to 82.28 EUR/MWh, the lowest since October 2026. Over the past 4 weeks, Natural Gas EU lost 1.57%, and in the last 12 months, it increased 167.21%.