Due to Trump’s Tariff Threats, Gas Prices in Europe Reach Their Highest Levels
Sudan Events – Agencies
Natural gas prices in Europe have risen to their highest levels in nearly two years, amid increased withdrawal rates from the continent’s stockpiles due to low temperatures, while U.S. threats of imposing tariffs on imports are exacerbating the risk of global supply disruptions.
Bloomberg News reported that the price of benchmark futures rose by 4.1 percent on Monday to 58 euros (59.9 dollars) per megawatt/hour, the highest price since February 2023. This rise continued for the fourth consecutive week.
It is expected that temperatures in Northwestern Europe will decline again in the coming days, increasing demand for heating and, consequently, the demand for natural gas.
At the same time, the demand for heating is likely to increase the withdrawal rates from European storage, which has already decreased to its lowest levels since the European energy crisis in 2022.
In another sign of the upward trend dominating the market, gas options show that traders are rushing to hedge against rising European gas prices, indicating they expect further supply disruptions before the summer storage season.
Meanwhile, European stocks rose slightly on Monday, supported by the energy sector, while markets focused on concerns over a potential major trade war after U.S. President Donald Trump threatened to impose tariffs on all steel and aluminum imports to the United States.
The Stoxx 600 index rose by 0.3 percent at 08:10 GMT. On Friday, the benchmark index recorded weekly gains for the seventh consecutive time.
The yield on the 10-year German bond, the benchmark for the eurozone, fell to 2.37 percent after the new tariff threats. Shares in interest-sensitive real estate companies rose by 0.9 percent.
The oil and gas companies’ sector led the gains, with the index rising by 1.4 percent. The index was supported by a 6.4 percent increase in the share of the oil giant “BP” after Elliott Investment Management acquired a stake in the company.
The basic resources sector index fell by 0.4 percent after Trump’s pledge to impose tariffs on steel and aluminum imports. Shares in the “GTT” group dropped 5.4 percent, falling to the bottom of the Stoxx 600 index after the resignation of the French company’s CEO, Jean-Baptiste Schuermeyer.
