European natural gas futures fell to €28/MWh at the start of December, their lowest level since April 2024, extending a decline of more than 7% in November. Prices have come under pressure as US-led ceasefire talks between Ukraine and Russia raised the prospect of an end to the three-year war and the potential softening of EU sanctions on Russian energy. Record US LNG exports have also helped keep prices in check across both Asia and Europe, while Norwegian pipeline flows have remained steady. Meanwhile, LNG demand in Asia has been subdued, and weather forecasts point to warmer-than-usual temperatures across much of Europe, suggesting heating demand will stay muted. As of November 29, EU gas storage facilities were 75% full.
