Europe Gas Heads for Sharp Annual Drop as LNG Surge Calms Market

European natural gas prices are heading for a sharp annual drop despite unusually low inventories, a sign of how dramatically the market has changed since the energy crisis as a wave of LNG reshapes supply expectations.

Prices are on track to finish 2025 at roughly half the levels reached earlier this year, reversing concerns that Europe could face a tight winter with reserves well below recent norms. Instead of focusing on thinner buffers, traders have taken comfort in the sheer volume of gas available on the global market.