European natural gas prices are volatile, hovering around €53 per megawatt-hour after a significant 7.8% jump last week that brought them to a 15-month peak.
Europe gas: high prices, low stockpiles
Traders are weighing several factors, including supply risks and fluctuating demand. Despite a forecast of warmer-than-average temperatures in February, which should reduce heating demand, Europe's gas reserves have been depleted more quickly than anticipated this winter, resulting in lower-than-normal storage levels for this time of year. Although the EU as a whole just barely met its storage target, major consumers like France fell short, raising concerns about refilling stockpiles during the summer months.
Global trade risks cloud LNG outlook
The US has advocated for increased EU purchases of US liquefied natural gas (LNG), but near-term availability is restricted due to export capacity being maxed out. Furthermore, escalating trade tensions, including recent tariff actions, pose a risk to global trade, potentially dampening economic growth and impacting energy markets.
