Natural Gas Prices in Europe Remain Stable as Attention Turns to Future Transit Flows from Ukraine

Forex - European natural gas prices are fluctuating around €44 per megawatt hour, with less than a week remaining before the expiration of the pipeline transit agreement between Russia and Ukraine. Prices have been volatile as traders anticipate statements from political leaders regarding the future of flows, which are still favored as the most cost-effective option in several Central European countries. Ukraine stated last week that it would not accept alternatives that would result in the transit of Russian gas. Slovak Prime Minister Robert Fico discussed the impending end of the agreement with Russian President Vladimir Putin at the Kremlin on Sunday. Fico noted that Putin confirmed Russia's readiness to continue gas shipments to the West via Ukraine, but indicated that, given Kyiv's stance, this would be "practically impossible" after January 1. Although it currently meets only a portion of Europe’s gas needs, a sudden halt of the Ukrainian route could lead to price increases next month. Storage levels across Europe are lower compared to last year, making it even more challenging to replenish stocks next summer. The fill rate of natural gas storage in the EU stands at 75.93%. In the Netherlands TTF, the natural gas price is at €44.08.