Dutch and British wholesale prices plunged to two-week lows on Monday morning as forecasts turned milder and on hopes that tensions between the US and Iran will ease.
The Dutch benchmark front-month contract at the TTF hub was down €4.92 at €34.73 per megawatt hour (MWh), or $12.06/mmBtu, by 09:04 GMT, marking its lowest point since January 19, LSEG data showed.
The April contract fell by €2.90 to €32.50/MWh.
The British day-ahead gas prices plummeted 13.13p to 90.50p per therm, while the gas contract for next week was down 10.50p to 92.00 p/therm.
Prices opened with a noticeable downtick due to both milder weather forecasts over the weekend and easing US-Iran tensions, analysts at Mind Energy said.
Short-term forecasts point to milder weather next weekend and also the longer-term outlook has also turned milder, said LSEG analyst Ulrich Weber.
News on a new round of peace talks between Ukraine and Russia in Abu Dhabi later this week may also impact prices to the downside, he added.
US President Donald Trump said Iran was "seriously talking" with Washington, signalling a de-escalation in a brooding conflict that has raised concerns over the closure of the Strait of Hormuz, a key energy shipment choke point.
Any disruptions would affect tankers serving Qatar, the world's second-largest exporter of liquefied natural gas (LNG).
But, milder forecasts have not alleviated storage worries yet, LSEG's Weber said.
EU gas storage sites were last 41.13 per cent full, compared with a five-year average of around 57 per cent for this time of year, Gas Infrastructure Europe data showed.
(Reporting by Nora Buli)
