European natural gas prices corrected on Monday after big gains at the end of last week as warmer weather is forecast and wind power output increases.

The prompt Title Transfer Facility (TTF) contract fell by 6% Monday, dipping below $16/MMBtu. The benchmark jumped 22% on Friday amid labor strikes in France that have brought LNG imports there to a halt, colder weather and new defects that were found at a French nuclear plant that threaten the rest of the nation’s massive fleet.

The wild price swings in Europe are “reflective of just how sensitive the market remains to both sentiment and any potential supply risk, which drove short covering and professed gas market dependency” late last week, said Tobias Davis, head of LNG in Asia for broker Tullett Prebon. 

While warmer...