Prospect of peace plan in Ukraine pushes down natural gas prices

Natural gas prices are at their highest in 18 months, returning to a level close to that seen in March 2024. The decline in prices accelerated ten days ago after the press published details of a peace plan discussed between the United States and Russia. For the markets, the prospect of a ceasefire could lead Europe to backtrack on halting Russian gas imports. The markets also anticipate an end to US sanctions against the Russian LNG terminal Artic 2. The prospect of a mild winter and rising freight costs (which favour Europe over Asia) are further factors contributing to the fall in gas prices in Europe.