European natural gas futures have surged to €34.8 per megawatt-hour, marking the highest level in two weeks. This increase is largely attributed to forecasts predicting warmer-than-usual weather and a stable supply. Next week is anticipated to bring above-average temperatures, following what has been recorded as the hottest June ever for Western Europe. This region experienced temperatures soaring beyond 38°C, an increase attributed to both intense land heat and record-breaking sea temperatures in the western Mediterranean.
In an effort to mitigate potential price surges, the European Parliament has approved more lenient gas storage regulations. These new rules allow countries until December to reach the 90% storage target. On the supply front, the CEO of TotalEnergies has indicated that Europe will be able to manage without Russian liquefied natural gas by 2028, thanks to new capacities being developed in the United States and Qatar. He has also assured consistent gasoline supply, though he has cautioned about potential trade risks. The escalation of US tariffs under the Trump administration poses a threat, with the potential to stifle economic growth.
