European gas prices fall after near €90 peak amid profit-taking
European gas prices just dropped sharply after recently peaking at nearly €90, the highest in almost four years.
Traders took profits, sending Dutch futures down by over 5%. This drop is erasing an earlier gain to the highest level since late 2022
and comes as oil prices also slipped, with some talk of new diplomatic efforts around the Iran conflict.
Gas still over double pre-conflict levels
Even with this drop, gas is still more than double as expensive as before the conflict began.
Storage levels are low for this time of year (about 75% full), and Europe's competing with Asia for supplies while facing disruptions from the Middle East.
Rabobank senior energy strategist Florence Schmit points out that "We are seeing a bit of a correction after the €90 ceiling was reached."
Meanwhile, governments are hesitant to bring back price controls due to stretched budgets and high borrowing costs.