European natural gas prices have slightly decreased after an 8% increase last week, as traders await new signals regarding short-term supply prospects and progress in ending the war in Ukraine. This is reported by Bloomberg, writes UNN.
Dutch front-month futures for European gas fell 1.3% to 33.13 euros per megawatt-hour by 9:21 a.m. in Amsterdam
Details
The cost of futures decreased by 1.3%, remaining within a narrow range that has held for several consecutive days.
Several factors influenced the price drop. US President Donald Trump's negotiations with European and Russian leaders initially sparked optimism in the market, as there was talk of a possible peace agreement in Ukraine. This even pushed gas contracts to a 2025 low. Prices recovered as there was no tangible progress, the publication writes.
For Europe, the main challenge remains preparing for the heating season. Fuel reserves are being replenished, but risks remain. Supplies from Norway are partially limited due to facility maintenance, although reductions at the Troll field turned out to be smaller than expected. Russian gas, even if the war ends, is unlikely to become a key resource for the continent again, although Europe continues to receive it, but much less, the publication writes. At the same time, as indicated, additional global supplies could help ease competition for cargoes with other buyers, including Asian countries.
Recall
Earlier, Bloomberg reported that European natural gas prices are rising as optimism about an end to Russia's war against Ukraine wanes. This is happening amid the difficulty of reaching a peace agreement and preparations for the upcoming heating season.