Natural gas prices in Europe have fallen to near 2025 lows ahead of a summit between US and Russian leaders Donald Trump and Vladimir Putin. Bloomberg.
Gas futures traded in Amsterdam have fallen about 10% since the start of the month, reaching their lowest level since May.
While few traders foresee an imminent return of Russian pipeline gas to Europe — even if a ceasefire is agreed in Ukraine — any tightening or easing of sanctions on Russian energy could have significant implications for global supplies.
European gas prices are still higher than they were before the energy crisis, which began more than three years ago after Russia's invasion of Ukraine.
Most of Europe's gas now comes from distant countries like the United States and Qatar, with Russian supplies accounting for less than a fifth last year, and Europe is competing for these supplies with large buyers in Asia.
If Russian liquefied natural gas projects, some of which are currently under US sanctions, resume operations, it could increase global supplies and make gas easier for buyers to access.
Claudio Stoyer, a senior fellow at the Oxford Institute for Energy Studies, believes that the extent of any easing of energy sanctions will depend on the extent of the Putin-led ceasefire and a convincing commitment to reconstruction in unoccupied Ukrainian territory.
