The prices of European gas have fallen after the threat of US president Donald Trump to hurt the Russia with financial sanctions if there is no peace agreement in Ukraine.
Specifically, the futures ranged close to 35 euros per megawatt, after Trump threatened to impose “strict duties” about 100%if Russia did not conclude an agreement to terminate hostilities within 50 days.
At present, market participants do not see the pressure being an essential obstacle to Moscow’s energy exports, according to Bloomberg.
The sanctions – which, according to a White House official, could take the form of secondary sanctions or duties – would aim for buyers of Russian supplies, such as India and China. If they are implemented, this could limit global energy flows, complicating Europe’s efforts to create sufficient gas reserves in the winter.
It is worth noting that the 50 -day deadline helped to keep the most immediate concerns about supply.
Traders are closely monitoring Europe’s storage campaign after the fall of its three -year -old fuel reserves this winter.
Natural gas prices have increased in recent days, as heatwaves in Asia have increased the demand for liquefied natural gas there, threatening to increase global competition for vital fuel.
While imports of liquefied natural gas in basic markets in northwestern Europe remain above last year’s levels, volumes decreased last week. On the contrary, mainland China and Taiwan saw a recovery in weekly markets.