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European gas prices drop as muted demand offsets supply concerns

13 June 2022 12:07 (UTC +04:00)

European natural gas prices declined on Monday as muted demand helped to ease a tight market, APA reports citing Bloomberg.

Warm weather across the region is expected to keep a lid on gas use for heating over the coming week, while a forecast for increased solar energy production in the UK, Germany, and Spain may reduce the need for gas-fired power.

Dutch front-month gas, the European benchmark, fell as much as 3% to 80 euros a megawatt-hour, and traded at 82.45 euros as of 9:06 a.m. in Amsterdam. Friday marked the contract’s fifth weekly decline.

While Europe’s gas crisis is a “long way from over,” there have been signs over the past month of “at least a temporary easing in market stress,” analysts from Timera Energy said in a note.