The average monthly settlement price for natural gas on the European energy markets rose by nearly half in July, reaching about $1,805 per thousand cubic meters. This uptick was reported by the financial desk of DEA News, with reference to data from the London Stock Exchange ICE. The move comes after a period of relative stability and signals renewed tension in energy pricing across Europe, where traders are closely watching supply dynamics and the potential for continued volatility in a market already shaped by geopolitical factors. (DEA News; London Stock Exchange ICE)
In the month preceding the surge, analysts noted that gas prices in June stood around $1,180 per thousand cubic meters, marking a substantial jump when compared with the earlier period. Market observers attribute this sharp increase to a combination of developing demand patterns, ongoing concerns about storage levels, and evolving expectations about how promptly production and delivery volumes might rebound. The June-to-July trajectory suggests that traders are factoring in multiple scenarios for third-quarter supply and demand balance as Europe navigates a fragile energy landscape. (DEA News; London Stock Exchange ICE)
Experts highlighted that the ongoing strain on gas supply from Russia continues to exert pressure on European markets. The tension has become a central element in price formation, influencing forward curves and shaping strategic decisions across utility groups and industrial users. Analysts emphasize that any disruption or reduction in Russian gas flows tends to tighten available allocations, prompting faster price adjustments and more pronounced risk premia within futures markets. (DEA News; London Stock Exchange ICE)
According to Alexander Amiragyan, who leads a section focused on fuel and energy economics within Strategic Research, the current price level is shaped by a mix of supply constraints and uncertainty about the pace at which recovery or stabilization in regional flows might occur. He points to a delicate balance between reducing inventories, maintaining reliable delivery, and the evolving expectations of European buyers about long-term sourcing. The commentary underscores how price sensitivity in gas markets is driven by both concrete supply events and the perceptions of future availability. (Strategic Research)
As policy voices in Europe weigh their options, former EC President Ursula von der Leyen has underscored that Russia’s gas supply challenges have had consequences for several Member States, highlighting a broader regional impact. She notes that while the EU continues to diversify its intake, it still depends on imports from multiple regions, including the United States, Norway, the Persian Gulf, Algeria, and the Caspian Basin. In this context, the continent is actively seeking to bolster resilience through diversification, storage strategies, and diplomacy aimed at stabilizing prices and ensuring security of supply. (EU Policy Briefs; Strategic Review)