European gas prices decline ignoring Red Sea risks

European natural gas prices dropped as the region’s reserves remained resilient, even after Qatar seemed to have paused the flow of liquefied natural gas tankers through the Red Sea, Bloomberg reported on Monday.

The slide aligns with 3.5 per cent decline in benchmark futures on Monday after closing higher on Friday. Traders are finding comfort in the fact that the continent is on a relatively stable footing this winter after amassing record amounts of gas last year.

“Gas demand across the European Union remained well below pre-conflict levels in 2023, and for much of the year was also below 2022 levels — which were already depressed,” said Adnan Dhanani, an analyst at RBC Europe Ltd.