Gas prices in Europe have plummeted since US President Joe Biden agreed to a proposal for a summit with his Russian counterpart Vladimir Putin at the initiative of French President Emmanuel Macron.
The price of the natural gas reference contract for the Old Epirus fell by up to 6.5% on Monday morning. The White House accepted the French proposal, on the condition that Russia would not use military force against Ukraine, US government officials stressed late Sunday night. Moscow continues to deny any plans to invade Ukrainian territory.
The proposal rekindles hopes for a possible peaceful solution to the Russian-Ukrainian crisis, which has affected prices on a huge range of goods and commodities, from energy, metals and foodstuffs to stocks and currencies. Especially in Europe, the eyes are on the flows of Russian gas, which even today are four times higher than the corresponding period last year.
The Dutch gas contract, which is a pan-European benchmark, was down 5.6%, at 69.60 euros per megawatt hour at 10.06 on Monday morning (Greek time). Last week, prices fluctuated steadily, based on current events around Ukraine, finally closing with a fall for the third consecutive week on Friday. The corresponding British gas contract fell by 5.4% on Monday morning.
Large liquefied natural gas (LNG) flows, including from the US, natural gas flows from Norway and better-than-expected weather have smoothed the effects of reduced flows from Russia’s Gazprom to Europe.
Source: Capital
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