European gas slumps to 16-month low on strong supply outlook

A prolonged spell of mild weather has been a major contributor

Benchmark futures fell as much as 15% on Monday, taking the decline so far this year to 27%.

Natural gas prices in Europe dropped to the lowest level since September 2021 as the supply outlook got a boost with full stockpiles in China forcing buyers to send LNG cargoes to the continent.

Benchmark futures fell as much as 15% on Monday, taking the decline so far this year to 27%. Chinese importers are trying to divert February and March shipments to Europe amid weak prices at home and high inventories. That’s easing concerns that the reopening of China’s economy will boost demand and pull cargoes away from the West.