European natural gas futures fell 7% to €33/MWh from a monthly high of €36 as investors realized the previous price rally was an overreaction.
European natural gas prices jumped 50% after a two-year low fell below 23 euros in early June due to supply problems following lengthy maintenance work at Norwegian production facilities.
However, while supply disruptions in Norway cut supply by 1.4 billion cubic meters, weaker-than-expected demand and abundant availability of liquefied natural gas weakened it by 3 billion cubic meters in May and June, according to Goldman Sachs Group Inc.
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