Investing.com — The prices of in Europe experienced fluctuations as US President Donald Trump lifted a pause on new export licenses, reducing uncertainty regarding the global supply in the long term.
The Dutch front-month futures, which serve as Europe’s gas benchmark, saw a slight rise of 0.3% to €48.00 per megawatt-hour by 8:32 a.m. in Amsterdam. This followed a more than 2% gain in the previous session, indicating a swing in benchmark futures.
The US president has revoked a restriction put in place by his predecessor, clearing the path for new permit applications to export liquefied natural gas from the US. Trump also repeated his appeal for the European Union to purchase more American oil and gas to avoid tariffs. The US is already the largest LNG supplier to Europe.
According to a report released by the International Energy Agency on Tuesday, Europe’s LNG imports could see a rise of over 15% in 2025, following a decrease last year. However, the global gas market balance continues to be delicate.
Since the energy crisis three years ago, Europe has been successful in diversifying its supply sources. Despite this, the current heating season has underscored its vulnerability.
The cold weather, after two relatively mild winters, has resulted in a quicker than usual depletion of gas inventories. As a result, Europe’s gas prices remain high, extending the period of discomfort for consumers.
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