European natural gas prices continued falling Monday after hitting record highs over the last two weeks that pulled liquefied natural gas (LNG) cargoes away from Asia toward the continent in droves. 

European natural gas prices had been at a rare premium since Dec. 13, incentivizing traders to divert cargoes toward the continent mid-voyage.  But the Japan-Korea Marker February contract finished above $40/MMBtu on Monday, while the prompt Title Transfer Facility (TTF) contract in Northwest Europe dipped below $36 and inverted the spread. 

“The ease is linked to warmer weather, a healthy LNG outlook and below-average consumption due to the Christmas holiday season,” said Schneider Electric analyst Aidana Childebayeva of the slide in European prices. 

Temperatures across...