European gas prices drop 4% amid global market sell-off

European gas prices began the week with a 4% decline, following a significant sell-off in the financial markets.

The gas price per megawatt-hour for September futures contracts on the TTF, the Netherlands-based virtual natural gas trading venue with the most depth in Europe, closed on Sunday at €36.65 ($40.14).

Natural gas prices opened at €36.75 today and fell to €34.10 by 12:05 p.m. local time (0905 GMT), marking a 4% drop from the previous close.

Last week, prices surged due to concerns that geopolitical tensions in the Middle East could disrupt supply. However, this week, prices started under significant selling pressure in global financial markets.

Global markets have turned negative as recession fears in the U.S. intensified rapidly. Concerns that economic activity in the country may slow down more sharply than anticipated have led to increased selling pressure.

While a historic decline was seen in Asian markets, the depreciation in Japanese equity markets exceeded 10% and in South Korea, losses approached 10%.

European stock markets also started the first day of the week with a sharp decline. After the opening, the benchmark Stoxx Europe 600 index fell by 3%.