Gas prices in Europe have fallen to a minimum: the US is pressuring Ukraine over the peace plan

Natural gas prices in Europe

Natural gas prices in Europe have reached their lowest level in the last 18 months, marking significant changes in energy markets. At the same time, an American-Russian peace plan is being discussed, with the US threatening to cease military support for Ukraine if it is not approved by next Thursday. The share of Russian gas in EU imports has dropped to about 10%, indicating a reduced dependence of European countries on Russian energy resources.

Gas price dynamics

Gas contracts fell by 3.5% to €30 per megawatt-hour, while prices for Dutch futures for delivery next month dropped by 3.1% to €30.20 per megawatt-hour. This decline in gas prices has become possible against the backdrop of expectations for warmer temperatures in Northwestern and Central Europe, which may reduce demand for energy resources in the coming months.

In light of these events, Ukrainian President Volodymyr Zelensky has stated that the country is faced with a choice - to lose its main ally or to lose dignity.

Energy strategist at Rabobank Florence Schmitt characterized this dynamic as premature, highlighting potential risks for the market.

Meteorologist Vaisala's Matthew Dross noted that the beginning of December continues to demonstrate a trend towards warmer conditions, which may further impact market indicators.

Thus, the situation in the gas market in Europe remains tense, considering the pressure from the US and changing climate conditions that may affect the energy security of the region. The decline in gas prices may influence the energy strategies of EU countries, especially in the context of reducing dependence on Russian supplies, which could lead to further changes in political and economic relations between states. At the same time, the situation in Ukraine and its military support remain important aspects in international negotiations and regional security.