European Gas Plunges as Industries Struggle to Boost Demand

  • Economic activity in region yet to make a meaningful recovery
  • Current prices also doing little to spur Chinese purchases
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European natural gas prices slumped further to a two-year low as a weak regional economy hits the prospects for demand.

Germany suffered a recession in the first quarter, highlighting the continent’s struggle in emerging from a crisis that was partially created by record-high energy costs last year. Industrial demand for gas in Europe has been sluggish despite the recent dip in prices, resulting in an oversupplied market.