European gas prices to rise amid declining optimism for peace in Ukraine - Bloomberg

European natural gas prices are heading for their first weekly gain in three weeks, as initial optimism about United States President Donald Trump's efforts to end Russia's war against Ukraine wanes. This is reported by Bloomberg, writes UNN.

Details

Benchmark futures rose slightly on Friday, and were expected to gain about 8% this week. While prices fell to a yearly low in anticipation of a potential peace agreement, Russia's demands for a say in Ukraine's security guarantees and territorial claims underscored the difficulty of reaching a deal.

For many traders, the prospect of peace still remains distant, as does the possibility of additional Russian energy flows returning to the market. This means that Europe will have to continue competing for gas supplies with other buyers, preparing for the upcoming heating season.

"Clearly, we are still very far from an agreement that could be acceptable to all parties."

Currently, the European gas market is preparing for upcoming maintenance work in Norway, a key gas supplier, which will limit available supplies. Higher prices may be needed to attract liquefied natural gas cargoes and prevent them from being sent to Asia.

On the morning of September 22, in Amsterdam, the price of Dutch front-month futures, which is the European gas benchmark, rose by 1.1% to 33.55 euros per megawatt-hour.

Addition

OPEC raised its forecast for global oil demand in 2026 by 100,000 barrels per day, to 1.38 million barrels per day. At the same time, the forecast for supply growth from non-OPEC+ countries decreased, especially due to the expected reduction in US shale oil production.