Brent lost 0.88% to 94.27 dollars. A barrel of West Texas Intermediate yielded 0.53% to 88.94 dollars.
The price of gas climbed Tuesday to its highest level in six months in Europe where concerns about energy supplies are intensifying, while oil prices stabilized.
The Dutch TTF, the benchmark for natural gas in Europe, took 4.72% to 230.50 euros per megawatt hour (MWh) around 9:35 a.m. GMT (11:35 a.m. in Paris).
Historically, the price of gas was only higher in two sessions in early March when economic sanctions against Russia after its invasion of Ukraine upset the market.
And the impact of the energy crisis now seems to be looming: gas bills will rise in Germany.
Even if the government promised Monday to cushion the shock for the most modest, from October 1, importers will be able to collect 2.4 centimes more per kilowatt hour (KWh) of gas from companies and individuals.
“Governments hope that such measures will be enough to reduce demand, and allow the whole continent to get through the winter,” commented analysts at Deutsche Bank.
Very dependent on Russian gas imports, Germany is also facing a drought which is lowering the level of the Rhine below the level necessary for river transport.
“The level of the Rhine is low enough that the coal-fired power stations, which depend on barges to bring them the basic material, are struggling to bring fuel to them,” commented UniCredit analysts.
On the oil side, the European Union (EU) announced on Tuesday that it was examining Iran’s response to its compromise on the nuclear file, a crucial step which could mark the entry of long and difficult negotiations into their last straight line.
The prospect of the return of Iranian barrels to the market has pushed prices down, especially as the weakness of the global economy promises sluggish demand.
The barrel of Brent from the North Sea for delivery in October lost 0.88% to 94.27 dollars.
The barrel of American West Texas Intermediate (WTI) for delivery in September yielded 0.53%, to 88.94 dollars.