European Gas Prices Fall to One-Week Low as French Energy Strike Ends

European wholesale natural gas prices fell on Thursday to their lowest level in over a week, extending a three-day decline after the conclusion of a labor strike in France eased near-term supply constraints.

Strike Resolution Restores LNG Flows

The primary driver for the price drop was the end of a 24-hour industrial action by French energy sector unions. The strike had disrupted the flow of natural gas into the continental grid, forcing Belgian operator Fluxys to slash send-out capacity at the Dunkirk LNG terminal — France's largest — from a minimum of 9.4 gigawatt-hours (GWh) per day to just 4 GWh on Tuesday.

With operations returning to normal, the price of key European gas benchmarks retreated:

• The front-month Dutch TTF contract, the European benchmark, fell 1.23% to approximately €76.98 per megawatt-hour (MWh), its lowest point in over a week.
• In the United Kingdom, the NBP front-month wholesale contract also declined 1.23% to trade around 191.00 pence per therm.

The restoration of regasification capacity at Dunkirk and renewed exports from France via interconnecting pipelines put immediate downward pressure on near-term contract prices, according to market reports.

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Broader Supply Concerns Linger

Despite the temporary relief, the market's underlying fundamentals remain tight. According to data from Gas Infrastructure Europe, underground gas storage facilities in the European Union have only reached 68.5% capacity as the injection season nears its end.

This storage level is significantly below historical norms, lagging the five-year seasonal average by approximately 16 percentage points. The persistent deficit highlights the region's structural supply vulnerability heading into the winter heating season, providing a floor for prices.

Macroeconomic Headwinds

The drop in gas prices comes during a critical week for global monetary policy, with both the European Central Bank and the U.S. Federal Reserve announcing interest rate hikes. Central bankers have consistently cited high energy costs as a primary driver of inflation, and traders continue to price a significant risk premium into winter gas contracts amid ongoing supply and economic uncertainty.