Natural gas prices in Europe have fallen to their lowest level since May amid an anticipated historic summit between the US president and the Russian leader, which could be the first step towards ending the war in Ukraine and stabilizing the energy market. This was reported by Bloomberg, writes UNN.
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Gas futures in Amsterdam have fallen by approximately 10% since the beginning of the month, although experts note that the return of Russian supplies to Europe remains unlikely even if a peace agreement is concluded.
Despite the price decline, gas in Europe is still trading above pre-2022 energy crisis levels. The region receives most of its supplies from distant suppliers, including the US and Qatar, and less than a fifth of last year's imports came from Russia. At the same time, a possible resumption of Russian liquefied natural gas projects, including Arctic LNG 2 and other plants, could increase global supplies by 50% by 2030 if sanctions are lifted.
The degree of any easing of energy sanctions will depend on the scale of a Putin-led ceasefire, a verified cessation of the war in Ukraine, and convincing commitments to reconstruction in unoccupied Ukrainian territory.
Ahead of the summit, the Trump administration tempered expectations of a breakthrough, noting that a real impact on energy supplies would only be possible with lasting peace and the participation of Ukrainian President Volodymyr Zelenskyy in subsequent negotiations. Meanwhile, the US continues to encourage Europe to buy more LNG from the US, and the continent plans to completely abandon Russian energy imports by the end of 2027.
Analysts note that gas prices could recover due to the market overestimating a quick return of Russian gas, or in the event of increased sanctions against Moscow. Europe is currently benefiting from stable gas storage levels – at 73% of capacity this year.
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