Reference gas prices under future contracts in Europe fluctuated slightly after recording the second consecutive week of increase.
Meanwhile, in some parts of North Asia, purchases of liquefied natural gas (LNG) have increased due to the heat. In addition, a fuel shipment has recently changed direction, not going to Europe as expected.
This means Europe will have to spend more to ensure energy supplies for the upcoming winter.
Underground gas reserves in Europe reached 62% of capacity, lower than the same period in previous years. Meanwhile, hot weather has led to high demand for air conditioners in many parts of the continent.
Many weather forecast models show that European temperatures tend to return to average by the end of July 2025, thereby stabilizing people's energy demand.
Europe is also competing with many other countries to ensure global LNG supply.
However, gas price increases are still limited due to risks to global growth stemming from US President Donald Trump's tariff policies. Mr. Trump announced a 30% tax rate on goods from the European Union and Mexico last weekend.
Traders are also waiting for statements related to Russia, which was once a leading gas supplier to Europe.
Goldman Sachs analysts Samantha Dart and Frederik Witzenmann predict that Europe will store enough gas at around 80% by the end of the summer 2025. It is estimated that Europe will still have access to enough LNG despite increased competition from Asia in the coming time.
