Natural gas in Europe has not been this cheap all year. The main driver behind the price drop is the growing prospect of peace, although high storage levels across the continent are also playing a role in it, writes Világgazdaság.
Following the weekend meeting between Donald Trump and Vladimir Putin – and Trump’s talk with Ukrainian President Volodymyr Zelenskyy – European gas prices sank to a new low for the year on the Dutch TTF gas exchange on Monday.
Prices had already started to fall late last week in anticipation of the Trump–Putin talks in Alaska, and the downward trend continued into Monday, with rates nearing €30 per megawatt hour – the lowest level in 2025 so far, though still above pre-COVID levels.
A potential return of Russian energy to global markets, especially an increase in pipeline deliveries to Europe, could further boost supply. This is being supported by Europe’s underground gas storage facilities, which are now nearly 75% full.
On Monday, Trump was also holding talks with several key European leaders – including European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz, and NATO Secretary General Mark Rutte – to discuss potential pathways to end the war in Ukraine.
According to a Bloomberg report, some traders believe a limited return of Russian gas supplies to Europe is possible, thanks to the continent’s now much more diversified energy imports. Experts say American security guarantees, if accepted by Russia, could mark a turning point in efforts to end the war. However, the situation remains highly uncertain, and there is no immediate indication that the Alaska summit will bring significant changes to Europe’s energy supply.
Should the Trump–Zelenskyy meeting prove fruitful and take another step toward ending the conflict, European gas prices could fall even further.
While a peace deal would have implications for both electricity and natural gas markets, Hungary could benefit most significantly in the area of oil imports. A ceasefire would reduce the risk of attacks on the Druzhba (Friendship) pipeline – a key artery in Hungary’s energy supply that runs through war-torn Ukraine. The pipeline remains vulnerable to damage during fighting, and just last week Ukraine launched a strike on one of its major Russian nodes.
Hungary imports about 85% of its oil, accounting for roughly one-third of its total energy imports. Most of this oil arrives via the Druzhba pipeline from Russia, with the rest coming through the Janaf (Adriatic) pipeline from Croatia. A lasting peace deal in Ukraine would help ensure the continued safe operation of the Druzhba pipeline, securing a critical energy lifeline for Hungary.
Via Világgazdaság, Bloomberg; Featured image: Pexels
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