Gas crunch eases in Europe — but the respite might not last

FRANKFURT, Germany (AP) — Natural gas and electricity prices in Europe have plunged from summer peaks thanks to mild weather and a monthslong scramble to fill gas storage ahead of winter and replace Russian supplies during the war in Ukraine. It's a welcome respite after Russia slashed natural gas flows, triggering an energy crisis that has fueled record inflation and a looming recession.

Yet experts warn it's too soon to exhale, even as European governments roll out relief packages for people struggling with high utility bills and work on longer-term ways to contain volatile gas and electricity prices that have shrunk household budgets and forced some businesses to shut down.

Uncertainties include not only the weather but how responsive people will be to appeals to turn down their heating and how much demand there will be from Asian economies for scarce energy supplies. And the war a few hours east is a cauldron of possible unpleasant surprises that could cut energy supplies needed for electricity, heating and factory work and send prices sharply higher.

Persistent unknowns are leaving energy-intensive businesses jittery. They are appealing to governments to help them and their customers weather the energy storm so that disruptions in supplies of everything from glass to plastics to clean hospital sheets do not cascade through the economy.

“We must remember that we are still in a tense situation — an economic war between the European Union and Russia in which Russia has weaponized energy supplies,” said Agata Loskot-Strachota, an energy policy expert at the Center for Eastern Studies in Warsaw, Poland.

The good news is natural gas prices on Europe's TTF benchmark fell on Monday below 100 euros per megawatt hour for the first time since June. Electricity prices also...