Threat of a Strike on Russia. Gas Prices React

• Gas prices in Europe have fallen to around €34 per megawatt-hour, despite the threat of new US sanctions against Russia and its energy customers.
• The market remains skeptical about the scale of Trump's possible actions, although the Kremlin is considering a partial ceasefire with Ukraine as a gesture to Washington.
• Supplies to Europe are currently stable, with warehouses filling faster thanks to lower demand from China.

According to Bloomberg, gas futures prices have fallen, remaining around €34 per megawatt-hour - a range that has been in place for over a month.

Although Donald Trump has threatened further economic sanctions against Russia and its raw material importers – which could limit global supply and increase competition on the European market – skepticism about the scale of possible US actions is currently dampening price increases.

Meanwhile, the Kremlin is considering a concession to Donald Trump , whose envoy, Steve Witkoff, is arriving in Moscow. For now, according to Bloomberg, the Kremlin is considering a partial ceasefire with Ukraine covering airspace operations, including missile and drone attacks.

According to experts, potential US action against Russia is unlikely to directly impact the European gas balance. Nevertheless, traders remain vigilant for any signs of threats to global supply. "Europe is intensifying efforts to accumulate sufficient reserves before winter, aided in part by weaker demand from China," we read.

Currently, supplies remain stable, with pipeline gas flows from Norway, the main supplier, remaining near peak levels ahead of planned maintenance later this month. LNG deliveries are also above the seasonal average, Bloomberg reports.

Front-month contracts on the Dutch TTF exchange, the European gas price benchmark, fell 1.3 percent to €33.95 per megawatt-hour around 10 a.m. in Amsterdam.