Wholesale gas prices fall this week as fears over European heatwave ease

Stronger renewable generation is contributing to the weak demand for gas, analysts said

While gas prices have eased significantly from last year’s record, they remain about double the average between 2019 and 2021 and five times higher than US prices, chemical giant BASF said as it reported quarterly earnings. 

European wholesale gas prices fell for a third day, with Citigroup analysts seeing sluggish demand and high inventories keeping a lid on prices.

Futures prices fell as much as 8% in the session, putting the market on track for a weekly loss. The moves are providing some respite after abrupt price jumps earlier this week, spurred by fears that hot weather in the Mediterranean could trigger a spike in demand.