European natural gas futures eased from multi-week highs on Monday as investors booked profits following a sharp rally in energy prices.
The front-month Dutch TTF gas contract, the European benchmark, fell 3.5% to around €32.50 per megawatt-hour by midday trading, paring gains from a recent surge that pushed prices to their highest levels since early March. The retreat followed a period of heightened volatility driven by supply concerns and strong demand amid unseasonably cold weather.
Traders cited profit-taking as the primary driver behind the decline, with some also pointing to a slight improvement in storage levels across Europe. Data from industry group Gas Infrastructure Europe showed European gas storage facilities at 62.3% capacity, up from 61.8% a week earlier, though still below the five-year seasonal average.
The recent price surge had been fueled by fears of supply disruptions, particularly from Norway, where maintenance work at key facilities had raised concerns over export volumes. Additionally, colder-than-usual temperatures across the continent increased heating demand, further tightening the market.
Analysts at energy consultancy Energy Aspects noted that while the profit-taking phase may continue in the near term, the underlying tightness in the European gas market remains intact. "The structural supply risks have not disappeared," one analyst said. "Any further cold snap or unplanned outages could quickly reignite the rally."
The European gas market has been highly sensitive to geopolitical and weather-related developments in recent months, with prices fluctuating sharply in response to shifting supply and demand dynamics.
