European gas prices drop amid mild weather, oil slump

European natural gas futures fell below €40 per megawatt-hour, driven by falling oil prices as global markets responded to the uncertainty surrounding the US election results.

European gas prices drop amid mild weather, oil slump

Mild temperatures also supported the drop in natural gas prices, which have kept heating demand lower than expected. Additionally, gas storage levels are currently around 95%, providing a buffer and helping to balance the market. On the other hand, US Gulf oil and gas producers started shutting down operations and evacuating workers in anticipation of Tropical Storm Rafael, which is forecasted to strengthen into a Category 1 hurricane and impact offshore production areas. While these weather-related disruptions may temporarily affect supply, broader risks worry investors.

Geopolitical tensions and production challenges keep energy market uncertain

Geopolitical tensions in the Middle East, uncertainties surrounding Russian gas transit through Ukraine, and ongoing production challenges in Norway and the US add layers of uncertainty to the market, keeping energy investors on high alert.