European Gas Prices Drop as Alternative Shipping Routes Eased Energy Risk Premia

European wholesale natural gas prices continued their downward trend on Monday, falling over 2% as evidence of alternative shipping routes around Persian Gulf choke points helped ease energy risk premia.

The benchmark Dutch front-month TTF contract dropped 2.5% to trade at 77.55 euros per megawatt-hour (MWh), building on last week's multi-session pullback in the European gas market.

In Great Britain, the equivalent NBP wholesale gas contract slid 2.91% to reach 192.36 pence per therm, near its lowest level in several weeks.

The European Central Bank (ECB) has warned that wholesale gas price shocks are now feeding into inflation at a faster pace than before, with over half of euro area countries experiencing consumer gas inflation within 1-3 months.