European natural gas prices fell sharply in early trading on Tuesday after President Trump said the war in Iran will end “very soon,” easing concerns about prolonged supply disruptions in the Middle East.

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As of 08:30 GMT, the front-month Dutch TTF Natural Gas Futures dropped 15.6% to 47.68 euros a megawatt-hour. Analysts at ANZ said the pullback in crude oil prices dragged the rest of the energy complex lower. Natural Gas Futures dropped 1.5% to $3.07.

Europe remains in a vulnerable position despite the price decline. Storage tanks are heavily depleted following the winter season, and liquefied natural gas supply has been severely disrupted.

The cessation of production from Qatar, one of the biggest natural gas producers in the world, is likely to have wide ranging ramifications for the market over the coming months, according to ANZ analysts.
Source: Investing.com