European Gas Slumps as EU Leaders Unite to Back Crisis Measures
- Politicians agree to support further work toward a price cap
- Germany yields to pressure from other nations for more action
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Natural gas in Europe declined after leaders came together to back urgent measures, including a price cap, to contain the energy crisis that’s engulfed the economy.
Benchmark futures fell 11% on Friday, posting a third straight weekly loss. The politicians asked the European Commission to propose a “temporary dynamic price corridor,” and said they would pursue a framework to cap the price of gas in electricity generation. They also want to take steps to avoid extreme price spikes and use the EU’s joint purchasing power in negotiations with sellers.