European wholesale natural gas prices fell for a third straight session on Thursday, reaching their lowest level in more than a week.
The decline followed the end of a labor strike in France, which restored capacity at a major LNG import terminal and eased short-term supply concerns.
European Gas Prices Extend Decline
The benchmark Dutch front-month TTF contract fell 1.23% to around €76.98 per megawatt-hour (MWh).
That marked its lowest level in more than a week as pressure on near-term supply conditions eased.
In the United Kingdom, the comparable NBP wholesale gas contract also declined by 1.23%. Prices traded near 191 pence per therm, close to a one-week low.
French Strike Ends and Gas Flows Recover
The main factor behind the latest decline in European gas prices was the conclusion of a 24-hour strike across France’s energy sector.
Industrial action by French energy unions had previously disrupted gas deliveries into the European network.
During Tuesday’s strike, Belgian terminal operator Fluxys sharply reduced sendout capacity at the Dunkirk LNG terminal.
The facility, which is France’s largest LNG import terminal, saw minimum sendout capacity fall from around 9.4 gigawatt-hours per day to just 4 GWh per day.
Dunkirk LNG Terminal Returns Toward Normal Operations
With the strike now over, operations across French nuclear and gas infrastructure have started returning to normal.
Regasification activity at the Dunkirk LNG terminal has also begun recovering toward standard capacity levels.
The return of French gas flows through cross-border connections placed immediate downward pressure on short-term European gas contracts.
For now, improving French supply conditions have outweighed some of the broader geopolitical risks affecting energy markets.
EU Gas Storage Reaches 68.5%
Despite the latest decline in European gas prices, the wider supply situation remains relatively tight.
Data from Gas Infrastructure Europe showed that underground gas storage facilities across the European Union had reached approximately 68.5% of capacity.
However, storage levels remain well below typical seasonal levels.
EU gas inventories are around 16 percentage points below the five-year seasonal average. This is notable because storage facilities would normally be much closer to full capacity at this stage of the injection season.
Winter Gas Supply Risks Remain
Lower storage levels could leave Europe more exposed to stronger demand during the winter months.
Cold weather, supply disruptions or higher global LNG demand could place renewed upward pressure on natural gas prices.
As a result, traders continue to monitor storage injections closely as the European winter approaches.
ECB and Fed Rate Hikes Add Market Uncertainty
The decline in European gas prices also comes during an important week for global monetary policy.
Both the European Central Bank and the US Federal Reserve have recently raised interest rates.
Central banks continue to highlight elevated energy costs as an important contributor to inflation.
As a result, energy traders are maintaining higher risk premiums across winter gas contracts, even as near-term prices retreat.
European Gas Market Remains Sensitive to Supply Risks
The end of the French strike has provided temporary relief for European energy markets by restoring gas flows and LNG terminal capacity.
However, relatively low EU storage levels and continued geopolitical uncertainty mean that the broader gas market remains vulnerable to renewed volatility.
Traders will now be watching LNG flows, storage levels and winter demand for further direction in European gas prices.
