Quotations on European gas platforms fell to the lowest level since June 11, even before the start of the Israeli-Iranian escalation. The sharp decrease is connected with the announcement of the US President Donald Trump about the achievement of a ceasefire between Israel and Iran. Prices have effectively returned to pre-conflict levels, informs ExPro.
Natural gas futures at the TTF hub in the Netherlands fell sharply by more than 12% to €35.3 per MWh. Prices lost 5 euros overnight. The market is currently well supplied with both pipeline gas, particularly from Norway, and liquefied natural gas (LNG). Due to the cease-fire, there are no expected disruptions to LNG supplies through the Strait of Hormuz to Europe or other regions.
In addition, Israel is likely to be able to resume production from its fields and export gas to Egypt again in the near future. This, in turn, will reduce Egypt’s demand in the LNG spot market.
In recent weeks, the Ukrainian gas market has shown high sensitivity to fluctuations in Europe. A decrease in quotations at European hubs may cause gas prices to drop on the Ukrainian market as well — to the level of TTF +10-12 euros per MWh, which is equivalent to approximately UAH 29,000 per thousand. cubic meters (with VAT).
According to ExPro data, as of June 23, the price of gas in Ukraine ranged from UAH 31,300 to UAH 31,800 per thousand. cubic meters (with VAT).
“If the prices on the domestic market remain at a higher level, private companies can intensify the import of natural gas from Europe to Ukraine. In June, at least several companies already imported gas to Ukraine.” – says the message.
