Investing.com -- European natural gas prices have dropped to their lowest level in four weeks. The benchmark Dutch TTF contract is currently trading below 40 euros per megawatt hour.

This decrease in prices has been influenced by a selloff in crude oil , according to analysts at ANZ Research.

The analysts believe the market’s reaction is likely due to expectations of an increased supply. This potential surge in supply could be a result of higher tariffs on Chinese exports, which may divert more Liquified Natural Gas (LNG) to Europe.

Meanwhile, storage concerns are also affecting the region. Current EU inventories are only filled up to 34.35%, indicating a challenging start to the storage injections season. In early trade, TTF prices fell by 1.5% to 38.60 euros per megawatt hour.

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