European Gas Price Drops on Warmer Weather Forecasts

0955 GMT – European natural-gas prices drop as weather forecasts point to warmer temperatures ahead, suggesting heating demand would remain subdued. The benchmark Dutch TTF contract falls 2.9% to 27.99 euros a megawatt hour and is down 10% on the month. “Recent models are pointing to warmer-than-expected temperatures in Europe, which could weigh on demand for gas,” analysts at ANZ Research say. “Traders seem confident that supplies will be plentiful and enable utilities to meet demand during the peak season.” Still, EU storage levels are currently 75% full, below the 90% level required to be reached by Dec. 1. (giulia.petroni@wsj.com)