Natural gas prices in Europe fell 15.5 percent on a weekly basis

The megawatt-hour price of natural gas in December term contracts in the Netherlands-based TTF, which is considered the reference in natural gas pricing in Europe, closed at 103.94 euros on Friday last week.

At 15.30 today, prices decreased by 15.5 percent compared to Friday's closing, falling to 87.87 euros.

The developments that strengthened the expectations for a diplomatic solution in the markets were Qatar's attempts to reduce the tension between the USA and Iran and the gains of the Democrats in the US midterm elections.

In his telephone conversation with US President Donald Trump on Friday, Emir of Qatar Tamim bin Hamad Al Thani discussed diplomatic efforts to reduce tension in the region and Qatar's mediation attempts in the negotiation process between the US and Iran.

It was also claimed that Qatar presented a draft agreement that stipulates that mutual confidence-building steps will be taken by the parties within 2 days and the nuclear negotiations will be restarted in order to reduce the tension between the USA and Iran.

In the news of the US-based Axios news site, based on sources close to the subject, it was stated that the draft prepared under the mediation of Qatar aims to pave the way for a more comprehensive agreement between Washington and Tehran with mutual steps to be taken within 2 days.

The news stated that Qatari mediators continue their discussions with Iranian officials and the White House on the draft, but the fundamental differences between the parties have not yet been resolved.

The occupancy rate of natural gas tanks in Europe is at 73.75 percent

On the other hand, disruptions in LNG shipments from the Middle East continue to negatively affect Europe's supply outlook. The region in question provided approximately 20 percent of global LNG supply before the conflict.

The fact that natural gas storages across the European Union (EU) lag behind the seasonal average is also a factor restricting the decline in prices. According to Gas Infrastructure Europe data, the occupancy rate of natural gas tanks in EU countries was measured at 73.75 percent as of yesterday.

The decrease in air temperatures and the weakening of wind and solar energy production increased the draws from natural gas storages.

As the winter season approaches, Europe's competition with Asian countries for LNG supply is expected to increase. The tendency of Asian buyers to increase their LNG purchases from the spot market is among the factors that may intensify the competition on global supply.