European Gas Prices Slide Amid Alternative Shipping Routes
European and British wholesale natural gas prices continued their downward trend on Monday, falling over 2% as evidence of alternative shipping routes around Persian Gulf choke points reduced energy risk premia.
The benchmark European gas price dropped by 2.5% to trade at €77.55 per megawatt-hour (MWh), building on last week's multi-session pullback.
Great Britain's equivalent wholesale gas price slid 2.91% to reach £192.36 per therm, reaching near multi-week low watermarks.
The European Central Bank (ECB) highlighted the accelerated impact of wholesale gas price surges on euro zone inflation in its Economic Bulletin, published Monday.
The study found that over half of euro area countries now see wholesale natural gas prices feed into consumer gas inflation within 1 to 3 months, a significant acceleration compared to 2022.