European natural gas prices slipped on signs Russia may be starting to gradually deliver the boost in supplies President Vladimir Putin promised.
Benchmark futures traded in the Netherlands fell as much as 5.2%, with data signaling an increase in Russian gas flows via Ukraine.
Gazprom PJSC booked some of the pipeline capacity offered at an auction on Monday to flow gas into Slovakia, according to the Ukrainian gas grid operator.
Europe’s top supplier had promised to boost gas flows to the region starting Monday, with Putin ordering Gazprom to fill its European storage sites following the completion of Russia’s domestic stockpiling campaign.
While flows didn’t get a boost on Monday, supply is looking better on Tuesday, with gas also now flowing westward from Poland to Germany, resuming the normal direction.
European gas futures fell to 75 euros a megawatt-hour by 8:53 a.m. in Amsterdam. The equivalent U.K. contract dropped 4.4% to 193.97 pence a therm.
European gas prices have more than tripled this year as Russia kept supplies capped just as liquefied natural gas cargoes were being diverted to Asia.
That meant Europe started the heating season with the lowest inventories in more than a decade.
But there are now signs that the tightness may ease and Putin will keep his promise.
Gazprom booked 10 million cubic meters a day of pipeline capacity at the Ukraine-Slovaia border, while the Russian gas giant also added some fuel into its German storage facilities over the weekend.
Some injections continue but at lower levels, data from its Astora unit showed.
