At the end of last week, futures prices for natural gas in Europe sharply declined by over 10% – to €35.2 per MWh, according to data from the ICE exchange. This is the first time in the last six months that this has occurred, and the reasons for this decline are linked to the new tariffs imposed by the U.S. president.
This is reported by Business • Media
In response to these actions, China has implemented a 34% tariff on all American goods, including energy resources. This could lead to a significant reduction or even a halt in the supply of American liquefied natural gas (LNG) to one of the largest gas buyers in the world – China. Europe and Asia traditionally remain competitors in the global LNG market.
The reduction in American LNG purchases by China opens up opportunities for an increase in the volume of available LNG that Europe can receive. Additionally, the new tariffs may lead to a slowdown in global economic development, which, in turn, will affect the decrease in demand for natural gas.
Expert Predictions on Gas Stocks in Ukraine
Market experts advise Ukraine to take advantage of the situation and actively import gas to build up reserves for the upcoming winter. This will ensure stability in energy supply amid potential market fluctuations.
“Now is a good time to import gas to Ukraine to build reserves for the upcoming winter.”