Natural gas prices in Europe experienced a significant decline this week, heading for their most substantial weekly loss in over two months. This drop comes thanks to stabilizing supplies and increasing gas reserves in the region.

Benchmark futures contracts fell by approximately 6% throughout the week, reaching their lowest point since April, when traders began replenishing their reserves ahead of the winter season.

This decline is attributed to rising gas storage levels, which have reached 80% of capacity, a figure higher than usual for this time of year. This development has eased concerns over potential supply shortages.

Lower gas demand in Northwest Europe due to mild weather, increased renewable energy generation, and continued gas flows from Norway have also contributed to the price decline.

However, some concerns remain about potential supply disruptions, particularly with the ongoing war in Ukraine and the possibility of further sanctions against Russia.

According to analysts at Energy Aspects, gas prices could still be susceptible to renewed increases if any disruptions occur in the global flow of liquefied natural gas.