European natural gas futures touched a four-week low, after the European Union said companies can keep importing Russian supplies without breaching sanctions.
Benchmark Dutch front-month futures fell as much as 5.7pc to 87.60 euros per megawatt-hour, the lowest since April 19.
They traded 4.2pc lower by 9:38 a.m. in Amsterdam, following two days of declines.
The UK equivalent fell as much as 4.8pc to 164 pence per therm, after jumping on Monday amid concerns about liquefied natural gas constraints.
The European Commission last week sent its revised guidelines to member states, noting that companies should make a clear statement that they consider their obligations fulfilled once they pay in euros or dollars, a spokesman said Monday.
The announcement eases a weeks-long standoff between the EU and Russia over energy supplies.
Moscow has demanded that payments be made in roubles, with buyers opening two accounts at Gazprombank so that a currency exchange can be made.
European companies were concerned that this might violate sanctions against Russia for its invasion of Ukraine.
Russia's natural gas shipments to Europe via Ukraine are set to remain curbed on Tuesday. However, EU imports of liquefied natural gas and warmer weather as summer approaches have also contributed to the downward price trend.
"European gas prices have shrugged off escalating geopolitical tensions," said Biraj Borkhataria, associate director of European research at RBC Capital Markets said in a note. (May 17, 2022)
EUROPE - Natural Gas - PRICE