FX.co ★ Natural Gas Prices in Europe Edge Down

European natural gas futures have experienced a continued decrease, settling around €42 per megawatt-hour on Tuesday. This decline comes as traders closely follow the developments from the ongoing discussions between U.S. and Russian officials in Saudi Arabia regarding the conflict in Ukraine. On Monday, senior representatives from the U.S. and Russia engaged in a 12-hour meeting, building on earlier talks between American and Ukrainian delegations. The possibility of a ceasefire has fueled optimism for increased gas supplies from Russia to Europe. As the heating season concludes, renewable energy sources like solar and wind are gaining a more substantial foothold within Europe's energy landscape. Nonetheless, the continent is emerging from winter with significantly depleted gas reserves, indicating potential challenges ahead for replenishing supplies. Current EU gas storage levels are approximately 34%, notably lower than the 59% at the same point last year.