FX.co ★ EU Natural Gas Hold Increase

European natural gas prices maintained their position above €35.7 per megawatt-hour on Monday, sustaining gains from the prior week. This trend was influenced by rising LNG prices driven by heightened competition from Asian markets and longer-term supply disruptions. Recent data highlighted robust LNG demand in India and China, which led to increased prices in European markets as utilities continued their efforts to replenish stocks before the summer season. At the beginning of the month, Europe’s inventories were at 40% capacity, a significant drop from 62.7% in the same period last year. The global LNG market outlook was bolstered by the easing of trade tensions between China and the United States, aiding the energy-intensive manufacturing sectors. Additionally, the European Union announced plans to introduce legal frameworks aimed at ending all imports of Russian gas and LNG by 2027, alongside a prohibition on all spot imports by 2025. This development coincided with legislative votes to reduce the region’s gas storage requirements to 83% before winter, down from the current 90%.