LONDON, Nov. 2 (Xinhua) -- European natural gas prices plunged more than 10 percent on Monday, marking their steepest daily decline since April 8, as renewed hopes for negotiations between the United States and Iran eased concerns over energy supply disruptions in the Middle East.
Dutch Title Transfer Facility (TTF) natural gas futures for December delivery, the European benchmark, fell to 93.18 euros (104.32 U.S. dollars) per megawatt-hour as of 1800 GMT on the Intercontinental Exchange (ICE), retreating from last week's surge above 100 euros (111.96 dollars) per megawatt-hour.
The decline followed reports that Iran's supreme leader had authorized the government to pursue talks with the United States. At the same time, U.S. President Donald Trump was reportedly willing to give diplomacy more time.
The prospect of renewed negotiations eased fears of further disruptions to oil and liquefied natural gas (LNG) shipments from the Gulf region, prompting a retreat in the geopolitical risk premium that had pushed energy prices sharply higher.
Despite Monday's sharp decline, Europe's gas market remains vulnerable to supply pressures as the winter heating season approaches. According to Gas Infrastructure Europe, EU gas storage facilities were 74.62 percent full as of Nov. 1, while Germany's storage level stood at just 61.03 percent, below the country's 70-percent target.
ING commodity strategists Warren Patterson and Ewa Manthey warned that tight supply conditions could keep European gas prices highly volatile throughout the winter, with colder weather potentially accelerating withdrawals from already depleted storage reserves. ■