Gas prices in Europe continued to fall on Wednesday, after Russian President Vladimir Putin said he supported a diplomatic solution to US tensions over Ukraine and announced the withdrawal of thousands of troops and equipment that had participated in nearby military exercises off the Ukrainian border, reports Bloomberg.

On Wednesday, European gas reference prices fell by 9.1%, the lowest level during the day since November 10.

At the TTF hub in Amsterdam, gas prices fell 8.4% on Wednesday morning to 64.99 euros for a Megawatt-hour, after a 12% decline on Tuesday.

After meeting with German Chancellor Olaf Scholz on Tuesday, Putin expressed hope that negotiations would resolve the stalemate over Ukraine. Markets are watching geopolitical developments, with Russia’s announcement of troop withdrawals affecting global stock, oil, gas and metals markets, according to Agerpres.

Analysts are closely monitoring Russian gas flows to Europe. Deliveries have been limited in recent months, although Moscow authorities have given assurances that they are sending the amount of gas requested by European customers.

On Tuesday, Putin told Scholz that Moscow remains a secure energy supplier. Mild weather and rising liquefied natural gas (LNG) deliveries have helped ease market fears in recent months.

Europe has been at the epicenter of an energy crisis since last year, when removing restrictions imposed in the context of the COVID-19 pandemic generated high energy demand at a time when natural gas stocks were low. Reference prices have risen significantly since last year, putting pressure on consumers and businesses.