European natural gas futures tumbled over 6.5% to below €52.5 per megawatt-hour, extending their decline from a two-year high of €59.
European gas prices fall on peace talks
The drop came as optimism grew over potential Ukraine-Russia peace talks, with reports indicating that U.S. President Donald Trump initiated negotiations between the two nations. Russian and Ukrainian leaders have reportedly expressed openness to dialogue, easing concerns over supply disruptions and lowering prices.
Adding to the downward pressure, weather forecasts predict milder temperatures across Europe in mid-to-late February, lowering expectations for heating demand. Meanwhile, reports suggest that the European Commission may introduce a gas price cap as part of a broader industry support package to be unveiled on February 26, further weighing on market sentiment.
Fears rise over low European gas storage
Despite the price drop, concerns over gas storage persist. Europe's storage levels currently stand at 47.2% capacity—the lowest for this time of year since 2022—raising fears about potential supply challenges when refilling for next winter.
