Natural gas prices in Europe continue to decline Monday, falling to the lowest level in more than three months.

The decline in prices is spurred by the EU’s proposed cap on prices, nearly full gas inventories and forecasts of warmer winter weather than projected.

The European gas benchmark Title Transfer Facility in the Netherlands drops to EUR 133,89 per MWh Monday morning against EUR 142.40 Friday afternoon.

According to Bloomberg News, the EU Commission’s plans to introduce a temporary cap on natural gas have sent prices down further Monday. The Commission is expected to present a proposal as part of a wider legislative package Tuesday.

Gas prices have gone down steadily over the past week, attributed to numerous countries’ reports that gas inventories are more or less full for the winter and further aided by forecasts of milder winter weather than usual and increased deliveries of LNG.

”Mild and windy weather means that demand has not really started to rise at this time,” writes Energi Denmark in a note, according to Bloomberg.

Norway’s revenue from oil and gas exports grows

EU energy ministers meet with no apparent solution in sight