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European Gas, Power Extend Slump as LNG Supplies Promise Relief

  • Traders also weigh demand risks as omicron variant spreads
  • Gas slumps to lowest in three weeks as milder weather forecast
Updated on

European natural gas fell for a fourth day as U.S. supplies are expected to bring relief to the tight market and traders weighed both milder weather and risks to demand from the omicron variant. 

Gas has whipsawed in recent days, soaring to record levels above 180 euros ($203.59) a megawatt-hour last Tuesday following a sharp drop in Russian flows. That’s 10 times higher than year-earlier prices. It slumped to about half that level on Monday -- and is heading for the longest declining streak in two months -- as shipments of liquefied natural gas head to Europe, easing an energy crunch that’s forced heavy industries to curb output.