European gas prices reach highest level in two years
Prices have climbed to $620 per 1,000 cubic meters due to frigid temperatures, diminished reserves, and potential tariff threats from the US. Read Full Article at RT.com.
TroibNews 
Natural gas prices in the EU have surged to their highest levels in two years, spurred by cold weather, diminishing gas reserves, and concerns over possible US tariffs on imports affecting the region.
On Monday, benchmark futures increased by more than 4%, reaching $620 per 1,000 cubic meters, or €58 per megawatt-hour for household use. This marks the highest price since February 2023, as per data from the Intercontinental Exchange.
The previous high of over $590 per 1,000 cubic meters was recorded last month, following Ukraine's decision not to extend a gas transit agreement with Russia. The five-year contract with Russian energy firm Gazprom ended on December 31, resulting in a halt of pipeline gas supply to countries including Hungary, Romania, Poland, Slovakia, Austria, Italy, and Moldova. Ukrainian President Vladimir Zelensky stated that ending the contract was aimed at reducing Moscow's energy revenue.
As Northwestern Europe prepares for frigid temperatures in the days ahead, heating demand is expected to rise, further depleting gas reserves. Currently, stockpiles are at 49% capacity, the lowest for this time of year since the energy crisis of 2022, down from 67% the previous year, according to Bloomberg.
Traders are also closely watching the possible implications of US tariffs on EU goods. US President Donald Trump announced plans on Sunday to impose a 25% tariff on all steel and aluminum imports, with similar duties on European products under consideration. He has previously insisted that the EU boost its purchases of American liquefied natural gas or face import tariffs.
According to Bloomberg, these actions could provoke retaliatory measures that may raise the cost of LNG imports, where the US currently stands as the EU’s largest supplier.
Despite ongoing efforts to lessen dependence on Russian energy following the escalation of the Ukraine conflict in 2022, Russia was the second-largest LNG supplier to the EU last year. Eurostat reported that in the third quarter of 2024, Russia's share was 18.9%, in contrast to 37.8% from the US.
The EU has experienced a significant decline in Russian gas imports, which once constituted 40% of the bloc’s total supply, due to sanctions related to Ukraine and the 2022 sabotage of the Nord Stream pipelines.
Lucas Dupont for TROIB News
On Monday, benchmark futures increased by more than 4%, reaching $620 per 1,000 cubic meters, or €58 per megawatt-hour for household use. This marks the highest price since February 2023, as per data from the Intercontinental Exchange.
The previous high of over $590 per 1,000 cubic meters was recorded last month, following Ukraine's decision not to extend a gas transit agreement with Russia. The five-year contract with Russian energy firm Gazprom ended on December 31, resulting in a halt of pipeline gas supply to countries including Hungary, Romania, Poland, Slovakia, Austria, Italy, and Moldova. Ukrainian President Vladimir Zelensky stated that ending the contract was aimed at reducing Moscow's energy revenue.
As Northwestern Europe prepares for frigid temperatures in the days ahead, heating demand is expected to rise, further depleting gas reserves. Currently, stockpiles are at 49% capacity, the lowest for this time of year since the energy crisis of 2022, down from 67% the previous year, according to Bloomberg.
Traders are also closely watching the possible implications of US tariffs on EU goods. US President Donald Trump announced plans on Sunday to impose a 25% tariff on all steel and aluminum imports, with similar duties on European products under consideration. He has previously insisted that the EU boost its purchases of American liquefied natural gas or face import tariffs.
According to Bloomberg, these actions could provoke retaliatory measures that may raise the cost of LNG imports, where the US currently stands as the EU’s largest supplier.
Despite ongoing efforts to lessen dependence on Russian energy following the escalation of the Ukraine conflict in 2022, Russia was the second-largest LNG supplier to the EU last year. Eurostat reported that in the third quarter of 2024, Russia's share was 18.9%, in contrast to 37.8% from the US.
The EU has experienced a significant decline in Russian gas imports, which once constituted 40% of the bloc’s total supply, due to sanctions related to Ukraine and the 2022 sabotage of the Nord Stream pipelines.
Lucas Dupont for TROIB News
