Natural gas prices are on a downward trajectory, confirming projections that an EU gas price cap agreement, reached earlier this week, would help contain international prices.

Yesterday, wholesale gas prices dropped to below 100 euros per MWh for the first time in months, ending the day at 97.752 euros per MWh. During trading today, the price level has dropped as low as 96.325 euros per MWh.

Though the gas price cap appears to be having a calming affect on international gas prices for now, the mechanism is expected to face a tougher test in spring, when gas demand will be greater as EU member states move to refill storage facilities following winter.

EU energy ministers agreed to trigger a cap if prices exceed 180 euros per MWh for three days at the Dutch TTF index, which serves as the European benchmark.