European gas prices rose slightly amid speculation that a US court move to block President Donald Trump's tariffs could increase demand for energy, Bloomberg reports, writes UNN.
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Gas benchmark futures rose 0.9% on Thursday, the last day of trading for the June contract. The market, as indicated, remains volatile.
Gas prices have fluctuated sharply since Trump announced so-called reciprocal tariffs in a sweeping decree on April 2. The vast majority of tariffs were ruled illegal on Wednesday, prompting the US Department of Justice to appeal.
The trade war has affected the outlook for global economic growth and energy consumption. For Europe, a net energy importer, the court's decision could mean it has to compete harder with other buyers for fuel. This could complicate efforts to replenish gas reserves before winter, the publication notes.
With the arrival of summer in the Northern Hemisphere, Europe may have to face a sharp increase in consumption in Asia, where increased demand for air conditioning may increase competition for seaborne liquefied natural gas. Currently, China mainly satisfies its needs by increasing domestic production and pipeline imports.
As for supplies, flows from Europe's largest gas supplier, Norway, are slowly gaining momentum after a period of seasonal maintenance. However, unplanned work at the country's giant Troll field continues, with full operation expected to resume on Friday.
Dutch front-month futures, the European gas benchmark, rose 0.444% to €36.85 per megawatt-hour at 9:02 a.m. in Amsterdam.