European Gas Prices Plummet 10.5% Amid Eased Supply Concerns
European natural gas prices saw a significant drop of 10.5% on a weekly basis, according to recent market data. This decline can be attributed to easing concerns over supply disruptions through the Strait of Hormuz, which subdued seasonal demand and continued storage injections.
The front-month October contract at the Dutch TTF, Europe's benchmark gas hub, closed at €79.51 per megawatt-hour last Friday, down from €71.16 per MWh on September 25. Prices fell sharply early in the week after reports that Iran could reopen the Strait of Hormuz if diplomatic efforts resumed.
The prospect of the waterway reopening raised expectations that LNG flows through the Strait could resume, easing concerns over global supply. However, prices recovered later in the week as expectations for rapid progress in US-Iran contacts faded.