European natural gas prices rise amid market changes

European natural gas prices rose by around 2% on Friday to €32.6 per megawatt hour.

This follows a 2.1% drop on Thursday and a 4.3% rise on Wednesday, and there is a possibility that it will be a slight increase on the week.

Price fluctuations reflect increased sensitivity to supply disruptions since Europe has increased its dependence on the global market since the energy crisis.

Traders who were initially tolerant of supply risks are now concerned about unplanned obstacles, global warming, and the intensification of global competition for cargo.

A recent bullish factor is a failure at Australia's Ixis LNG export plant, and there is a risk that global supply will tighten even though flow from Norway has recovered and exports from major US LNG plants have resumed after hurricane “Beryl.”

Meanwhile, demand for gas remains sluggish, and Italy's Eni Spa reports that consumption fell 16% in the second quarter, partly due to a decline in industrial activity.