European natural gas prices again tumbled Monday as storage inventories climbed and governments continued to discuss measures aimed at better controlling soaring energy costs.

The October Title Transfer Facility (TTF) contract fell by roughly 3% from Friday’s close to finish Monday below $54/MMBtu. TTF is down by more than 40% from August highs of $100. 

The contract jumped above $60 in the middle of last week after the European Commission released proposals that would target power consumption and excess energy sector revenues to tame energy costs instead of a cap on natural gas prices. TTF has fallen since then as European Union member states must sign off on the proposals and the market continues to weigh possible outcomes. 

“The situation in European energy markets has...