Gas prices rise after energy ceasefire agreement in Europe

On March 19, wholesale gas prices in Europe increased after a shift in energy policies related to the conflict in Ukraine. Russian President Vladimir Putin agreed to a temporary halt on attacks against energy infrastructure but did not support a complete ceasefire. As a result, Dutch gas prices rose by 1.41 euros to 42.13 euros per megawatt hour. British gas prices also saw an uptick. The day-ahead contract increased by 3.25 pence, reaching 103.25 pence per therm. This price change follows a day of decline as markets awaited news from a conversation between U.S. President Donald Trump and Putin. The temporary agreement on energy attacks is seen as a potential relief for gas supplies in Ukraine. However, both Russia and Ukraine have accused each other of conducting air strikes that damaged infrastructure. Analysts suggest that while a complete ceasefire could improve the flow of Russian gas, current gas storage levels in Europe remain low. Goldman Sachs analysts indicated that European gas inventories may not reach the desired 90% level by summer, but could still exceed 80%. They stated that prices need to remain high to attract liquefied natural gas (LNG) imports. The European carbon market also saw increases, with the benchmark contract rising 1.33 euros to 72.63 euros per metric ton.