European Gas Prices Fall Over 2% as Tankers Find Gulf Bypass Routes

European wholesale natural gas prices continued their decline on Monday, falling over 2% as evidence mounted that tanker ships had found alternative routes around Persian Gulf chokepoints.

The Dutch front-month TTF benchmark dropped 2.5% to 77.55 euros per megawatt-hour, while Britain's comparable NBP contract declined 2.91% to 192.36 pence per therm.

A new study from the European Central Bank found that changes in wholesale gas prices now reach consumer gas inflation within one to three months in over half of euro area countries, a marked acceleration from 2022.

The study also noted that electricity prices have become less sensitive to natural gas fluctuations due to growing renewable generation.