European natural gas prices dropped more than 3% on Tuesday to below €92/MWh, their lowest level in over a week, extending Monday’s 8.7% slide. The pullback followed reports of progress toward a possible US–Iran diplomatic deal, which raised hopes of an end to the eight-month conflict and reduced the geopolitical risk premium that had pushed prices above €100/MWh last week for the first time since 2022.
Nonetheless, structural supply concerns persist as colder weather drives up demand and storage levels lag behind official targets. Germany’s gas reserves stood at just 61.05% of capacity on November 2, short of the government’s 70% goal, while EU-wide inventories remained below 75%, the lowest level ever recorded for this point in the year. Forecasts point to further temperature declines across Northwest Europe this week, intensifying heating needs and reinforcing the region’s reliance on additional LNG imports.
