By admin222 
The sharp decline in prices came in part after the Trump administration cut off support for Ukraine, insisting on a quick end to the war. This led to speculation that gas flows from Russia could return to Europe.
European gas prices recovered from a five-month low as traders assessed the possible impact of US policy on the war in Ukraine, Bloomberg reported on Friday, March 7.
Gas futures fell 4.8% on Friday. But they later rose 6.5% after a morning drop, although overall they remain on track for a fourth consecutive weekly decline.
Donald Trump’s administration is weakening support for Ukraine in the security sphere, while promoting the idea of ending the war and possible US access to Ukrainian mineral resources. This has sparked speculation about the potential return of Russian gas to the European market, which is still suffering from high energy prices.
At the same time, Washington is ready to expand sanctions against the Russian energy sector if this helps end the war, US Treasury Secretary Scott Bessant said.
Meanwhile, the situation on the front remains tense, which reduces the likelihood of a quick ceasefire. According to DTEK, its gas production facilities in central Ukraine were damaged by Russian shelling overnight.
The gas shortage has forced Kyiv to increase fuel imports from Europe, further affecting the balance of supply in the region.
While the return of Russian pipeline gas to the EU remains unlikely after efforts to diversify supplies, the bloc continues to buy significant volumes of Russian LNG. However, energy security is now taking a back seat to defense priorities.
The market is also volatile as speculators close long positions on rising prices.
“High levels of algorithmic trading and rapid political change are not good partners for a calm, orderly market,” said Inspired Managing Director Nick Campbell.
It was reported yesterday that Ukraine is increasing its gas imports from the EU. This comes amid a spate of attacks on gas facilities in recent months.