Bloomberg expects European natural gas prices to rise amid market tightening

According to Bloomberg, natural gas prices in Europe are on track for their first monthly increase since January amid geopolitical tensions and signs of a tightening market.

Front-month contracts for gas deliveries surged by about 8%. On Friday, however, July shipments traded slightly lower. In April, prices fell by more than 20%.

Since then, the future of US President Donald Trump's trade strategy has become more uncertain, and the prospects for a quick resumption of Russian gas supplies have become less likely, according to Bloomberg. Europe has developed a roadmap for phasing out fossil fuels from Moscow. Meanwhile, Germany has strengthened its position against resuming the operation of the Nord Stream gas pipeline connecting the country with Russia.

Meanwhile, the fuel supplies from Norway, the region's largest gas provider, have decreased due to maintenance work at its facilities. The decline in supply has also been exacerbated by increased purchases of energy resources by Middle Eastern countries, creating competition for European consumers.