European natural gas prices saw a downturn after surging over 40% last week. This drop comes as traders take into account milder weather forecasts and international efforts to stabilize the Middle East conflict. On Monday, benchmark futures fell by up to 6.5%. According to Maxar Technologies, temperatures in France, Germany, and other parts of Europe are predicted to return to normal or even above-average levels in the coming days after a recent cold spell.
The situation is also being aided by the recovery of gas supplies from Norway, a significant fuel provider for Europe. This recovery is helping to alleviate the supply concerns that have been causing turbulence in the gas markets. Furthermore, the efforts of the US and its allies to prevent the Israel-Hamas conflict from spreading to the wider region have helped calm worries about disruptions to gas flows.
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Nevertheless, traders are keeping a close watch on the global supply situation as the market remains delicate and highly responsive to any shifts in fuel availability. Meanwhile, liquefied natural gas workers in Australia have renewed their call for strikes at Chevron Corp.’s facilities, potentially threatening a disruption in supplies while negotiations continue.
As of 8:38 a.m. in Amsterdam, the Dutch front-month gas, which serves as Europe’s benchmark, was trading 4.9% lower at €51.33 per megawatt-hour. The equivalent UK contract also experienced a 4.8% decrease.
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