empty
27.01.2025 11:41 AM
Gas market news

Gas prices have dropped, reflecting the widespread pessimism caused by the potential onset of global trade wars initiated by the United States as early as February 1 of this year.

However, all of Donald Trump's efforts to push EU countries to buy exclusively American gas are proving ineffective. It is unlikely that the EU will abandon Russian LNG as part of the 16th package of sanctions against Moscow, given the high dependency on these supplies.

This image is no longer relevant

Russian LNG has become one of Europe's last significant sources of energy dependence after the cessation of gas transit through Ukraine. Moreover, adopting new sanctions requires unanimous agreement, which will be difficult due to Hungary's active resistance and the continued reliance of some countries on Russian gas. Last year, the EU imported record volumes of LNG from Russia, with France, Spain, and Belgium being the largest recipients. Instead of an immediate halt to Russian supplies, the EU plans to follow a roadmap aimed at gradually reducing imports of Russian fossil fuels.

European policymakers prefer to avoid sharp restrictions on fuel imports to prevent price spikes that have already impacted domestic industries. However, new supplies from ongoing projects in the United States and Qatar are expected to help reduce LNG prices by 2026-2027.

Sanctions against Russia are expected to be extended only if Ukraine restores gas transit, ceases attacks on the Turkish Stream pipeline, and stops threatening oil transit routes. Currently, Hungary, which opposes new sanctions, has already incurred losses of €19 billion due to the existing measures. This explains the country's reluctance to approve additional restrictive measures.

The EU clearly lacks a backup plan in case Hungary vetoes the vote on extending sanctions against Russia. EU sanctions packages must be renewed every six months, requiring unanimous support from all 27 member states. The next vote is scheduled for January 31.

Amid growing tensions between the European Union and Russia, Hungary remains a key player capable of influencing the process of extending sanctions. Despite the apparent necessity for a tough stance against Moscow, Budapest is taking an increasingly independent course, raising concerns among EU partners. There are speculations that Hungarian leadership may use the situation to strengthen its position within the Union or achieve other political goals.

This image is no longer relevant

Disagreements over sanctions policy threaten EU unity, potentially weakening its influence on the international stage. If Hungary indeed decides to veto, it could set a precedent for other countries to express discontent and exert pressure on Brussels. The EU must develop a strategy to minimize such risks and ensure the stable functioning of its sanction mechanisms.

Technical analysis of Natural Gas (NG)

Buyers should focus on reclaiming the 3.915 level. Breaking this range would pave the way to 4.062 and 4.224, with the April 2023 level at around 4.373 as a further target. The most ambitious target is 4.800.

In case of a correction scenario, the first support level is located near 3.734. Breaking this level could quickly push the instrument down to 3.567, with the lowest target being the 3.422 range.

Miroslaw Bawulski,
Analytical expert of InstaForex
© 2007-2025
Gas
Summary
Neutral
Urgency
1 day
Analytic
Maxim Magdalinin
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Overview of the GBP/USD Pair on February 5: The Pound Holds Steady Ahead of the Bank of England Meeting

On Tuesday, the GBP/USD currency pair experienced minimal movement for most of the day. It seemed that market participants had exhausted their willingness to open new trades after Monday's activity

Paolo Greco 02:41 2025-02-05 UTC+2

Overview of the EUR/USD Pair on February 5: Verbal Panic Persists

The EUR/USD currency pair experienced a calmer trading session on Tuesday, although market participants still feel anxious. This anxiety stems from the swift decisions made by Trump, which caused

Paolo Greco 02:41 2025-02-05 UTC+2

Euro in the Crosshairs

To impose or not to impose—that is the question. Will Donald Trump implement tariffs, or will he abandon them? The fate of the EUR/USD exchange rate depends on this decision

Marek Petkovich 23:23 2025-02-04 UTC+2

EUR/GBP. Analysis and Forecast

Since the start of the European session today, the EUR/GBP pair has been attempting to recover, finding support near the round level of 0.8300. However, fundamental factors continue to support

Irina Yanina 11:54 2025-02-04 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is regaining positive momentum, partially reversing the sharp drop from the previous day.Today, USD/CAD is attracting some buying interest during the pullback from the 1.4385 area, halting

Irina Yanina 11:09 2025-02-04 UTC+2

What to Pay Attention to on February 4? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Tuesday. Yesterday illustrated how the U.S. president can create turbulence in the currency market, and we're not convinced that this turbulence has subsided

Paolo Greco 06:06 2025-02-04 UTC+2

Overview of the GBP/USD Pair on February 4: The Pound Sterling Crashed in Solidarity

The GBP/USD currency pair experienced a decline of about 100 pips at the beginning of the day and week on Monday, followed by an additional drop of 40 pips. However

Paolo Greco 03:05 2025-02-04 UTC+2

Overview of the EUR/USD Pair on February 4: The Week Started with a "Nuclear Bomb" Explosion

On Monday, the EUR/USD currency pair experienced significant volatility, marked not just by intraday movements but also by a notable gap that formed at the market's opening. We had been

Paolo Greco 03:05 2025-02-04 UTC+2

XAU/USD. Analysis and Forecast

Today, gold is recovering most of its intraday losses, trading near the psychological level of $2800. This safe-haven asset remains close to the all-time high reached on Friday, continuing

Irina Yanina 12:00 2025-02-03 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.