Investing.com -- As winter approaches its conclusion, European gas prices have witnessed a decline, reaching the low-€40s per megawatt-hour (MWh).

The European Union (EU) has proposed to maintain its 90% storage target by November 1, offering more flexibility in achieving interim milestones.

Despite these developments, market caution continues to prevail over the summer market fundamentals. The seasonal price difference between summer and winter contracts remains inverted. This indicates that the markets are still not completely at ease with the situation.

Geopolitical risks persist, primarily between Russia and Ukraine, despite efforts from the United States to broker a peace deal. Reported attacks on Ukraine’s gas infrastructure have also contributed to the ongoing geopolitical tensions, preventing gas prices from dropping further.

UBS, the multinational investment bank and financial services company, has forecasted that prices will continue to oscillate within the recent range.

"We expect prices to fluctuate within the recent range between the mid-€30s and the mid-€40s/MWh until there is more visibility," stated UBS.

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