Europe's gas prices reach three-month low as consumer demand and industrial production decline

Europe's gas prices have reached a three-month low, as demand from industry and households declines.

Prices at the Dutch Title Transfer Facility (TTF), Europe's leading trading hub, were on Monday morning hovering around €150 per megawatt-hour, falling at times below that mark, after settling at €156 on Friday.

The last time prices fell below the €150 threshold was in early July.

It comes as the European Commission announced the EU's gas storage facilities, which are essential for extra demand during winter, were at more than 90% capacity.

The relatively good news offers the bloc a much-needed respite in its fight to contain the energy crisis.

The latest prices represent a far cry from the €349 all-time record hit in late August, a month that raised the alarm across capitals and fuelled calls for an EU-wide cap on wholesale gas prices.

Prices, however, remain exceptionally high: a year ago, the TTF showed gas at €38 per megawatt-hour.

Expensive gas prices have a spill-over effect on Europe's entire energy sector.

As the most expensive fuel needed to meet all power demands, gas determines the final price of electricity. As gas prices soar, so do electricity bills for households and companies.

The EU is exploring different avenues, including targeted price caps and an alternative benchmark to the TTF, in order to lessen the influence of gas prices on electricity, but member states are still divided on what is the most suitable – and less risky– path to follow.

The downward trend in gas prices is set to guide the ongoing debate and could serve as an argument for member states, like Germany and the Netherlands, which have advocated for more cautious methods rather than forceful market intervention.

"Declining gas prices are due to