European natural gas futures hit a four-week low after the European Union said companies can continue to import Russian supplies without violating sanctions.
Enchmark’s Dutch front-month futures fell 5.7 percent to €87.60 per megawatt-hour, its lowest level since April 19.
They were trading 4.2 percent lower as of 9:38 am in Amsterdam after two days of declines.
The UK equivalent fell as much as 4.8 per cent to 164 pence a therm after rising on Monday amid concerns over liquefied natural gas (LNG) restrictions.
The European Commission sent its revised guidance to member states last week, urging companies to make a clear statement that they consider their obligations met as soon as they pay in euros or dollars, a spokesman said on Monday.
The announcement eased a weeks-long standoff between the EU and Russia over energy supplies.
Moscow has required payments to be made in rubles, with buyers opening two accounts with Gazprombank for currency exchange to take place.
European companies feared this could violate sanctions against Russia over its invasion of Ukraine.
Russia’s natural gas supplies to Europe via Ukraine are expected to remain curbed on Tuesday. However, EU imports of LNG and warmer summer weather also contributed to the downward price trend.
“European gas prices have shaken off escalating geopolitical tensions,” Biraj Borkhataria, associate director of European research at RBC Capital Markets, said in a statement.
“Although Russian flows have taken another step down in recent weeks, record levels of LNG imports into the continent have pushed storage back to more ‘comfortable’ levels.”
https://www.independent.ie/business/world/european-gas-prices-hit-four-week-low-after-eu-reassures-buyers-41657169.html European gas prices hit a four-week low after the EU reassured buyers