(Bloomberg) — European gas futures fluctuated ahead of a key European Union meeting to discuss a gas cap that’s almost one-third lower than an original proposal.
Benchmark futures slipped as much as 3% on Monday before rising as much as 1.3%. Prices are now slightly lower than where they were at this time last year, but are still almost three times higher than the five-year average.
After months of wrangling, EU member starts are seeking to break a deadlock over a controversial proposal to contain the impact of a historic energy crisis.
The Czech government, which holds the EU’s rotating presidency, suggested lowering the ceiling to €188 euros per megawatt-hour compared with the €275 proposed by the European Commission last month.
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Above-normal temperatures are forecast in northwest Europe in the coming days and may help to curb heating demand after a recent period of freezing weather. But another cold snap is coming at the end of the year, testing the region’s resilience.
Storage sites across Europe are now about 84% full, after freezing temperatures sped up the pace of withdrawals.
Windy weather is offering the region some support. In Britain, wind generation accounts for almost half of electricity generation on Monday. Total forecast demand in the UK is down by about a quarter compared to the end of last week.
Dutch front-month futures, Europe’s gas benchmark were down 1.3% at €114 a megawatt-hour at 8:51 a.m. in Amsterdam.