European Natural Gas Prices Hover Around €44 Amidst Uncertainty Over Ukraine Transit Route

European natural gas prices are trading just below €44 per megawatt hour after a significant increase in the previous session due to the uncertain future of Ukraine's gas transit route. The benchmark Dutch TTF contract is up 1.5%, trading at €43.73 per megawatt hour, marking an increase of over 6% for the week.

A contract regarding the flow of Russian fuel through Ukraine is expected to expire in less than two weeks. This situation has prompted European leaders to seek potential alternatives to maintain supply integrity.

Meanwhile, there is a significant rise in natural gas demand across Europe, leading to a rapid depletion of gas stocks and consequently driving prices higher. Pipeline gas exports from Norway are showing a declining trend compared to last year.

However, there is a slight increase in LNG imports, although they still lag behind figures from the past two years.