At the end of last week, futures prices for natural gas in Europe plummeted by more than 10% to €35.2 per MWh, according to data from the ICE exchange. This figure is the lowest in six months, driven by new tariffs imposed by the U.S. president. In response, China has introduced a 34% tariff on American goods, including energy resources.
This is reported by Finway
The reduction in American liquefied natural gas (LNG) supplies to China, one of the largest consumers in the world, will lead to an increase in the availability of free LNG in the European market. Europe and Asia traditionally compete for resources of this type of fuel.
Market experts believe that the decrease in purchases of American LNG by Chinese companies opens new opportunities for Europe. At the same time, the implemented tariffs may slow down global economic growth, which, in turn, will reduce the demand for natural gas.
Recommendations for Ukraine on Gas Reserves
Considering the new trends in the market, specialists advise Ukraine to import gas to build reserves for the upcoming winter. This step could be crucial for ensuring the country’s energy security in the future.