European gas prices drop due to hopes for a ceasefire in Ukraine and improving stock levels

European gas prices reach their lowest level in two months, supported by progress in Ukraine negotiations and slight improvement in gas reserves. The Dutch TTF futures contract falls 3.37% to €42.80.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

European gas prices saw a significant drop on Wednesday, February 26, reaching their lowest level in more than two months. This decline comes as concerns over gas storage in Europe ease and negotiations for a ceasefire in Ukraine make progress. At 15:10 GMT, the Dutch TTF futures contract, the benchmark for European natural gas, was trading at €42.80 per megawatt-hour (MWh), a 3.37% drop from the previous day. The price briefly hit €42.20, its lowest level since December 19, 2024.

Analysts highlight that this downward trend is driven by growing optimism over a diplomatic resolution to the Ukraine conflict, particularly after a phone call between Donald Trump and Vladimir Putin, which paved the way for ceasefire discussions. Giovanni Staunovo, an analyst at UBS, explains, “The expectation of a partial resumption of Russian gas exports,” alongside the potential for a ceasefire, is having an impact on prices in Europe. Russia, the second-largest oil producer in the world, remains a key source of energy supply for the continent.

Meanwhile, a slight improvement in temperatures has helped slow the decline in European gas stocks, alleviating pressure on the market. Mike Fulwood, a researcher at the Oxford Institute for Energy Studies (OIES), notes that Europe experienced a reduction in its gas reserves in the final quarter of 2024, due to extreme cold and a decline in wind energy production.

Adjustments to gas storage targets in Europe

At the same time, German energy companies are pressuring the government to reduce the gas storage target, set by the European Union at 90% for the upcoming winter. They are calling for the target to be revised to 80%, in order to ease market tensions. This demand reflects a desire to align storage capacities with market conditions and alleviate the anxiety of another potential energy crisis.

Impact of oil policy on energy markets

The oil market is also experiencing global volatility. Analysts note increasing uncertainty regarding economic and oil prospects, particularly following Donald Trump’s policies. “Economic and oil prospects are becoming increasingly uncertain,” says John Evans, an analyst at PVM. Consumer confidence in the United States, the world’s largest oil consumer, has notably declined in February. This trend has weighed on oil prices, although OPEC+ (Organization of the Petroleum Exporting Countries and its allies) is still considering adjusting its oil supply increase plan. According to Arne Lohmann Rasmussen, an analyst at Global Risk Management, it is likely that OPEC+ will once again postpone its supply increase plan.

Oil prices maintain relative stability

In the oil market, prices remained relatively stable on Wednesday. North Sea Brent, for April delivery, edged down by 0.05%, to $72.98 per barrel, while West Texas Intermediate (WTI), the US equivalent, rose 0.12%, to $69.01. These fluctuations underscore the ongoing uncertainty surrounding global oil demand prospects and potential adjustments to OPEC+ supply plans.

Daniel Chapo is visiting the United States to encourage ExxonMobil to commit to a major investment in Rovuma LNG, a strategic gas project for Mozambique as TotalEnergies resumes its suspended operations.
Baker Hughes will expand its coiled tubing drilling fleet from four to ten units in Saudi Arabia’s gas fields under a multi-year agreement with Aramco, including operational management and underbalanced drilling services.
Tokyo Gas commits to one million tonnes per annum of liquefied natural gas under the Alaska LNG project, boosting Glenfarne’s commercial momentum after five agreements signed in seven months.
Indonesia Energy Corporation partners with Aquila Energia to develop two pilot projects combining solar and natural gas to power data centres in Brazil, under a non-binding framework supported by both governments.
A former Ukrainian soldier accused of taking part in the 2022 sabotage of the Nord Stream pipeline is at the centre of a contested extradition process between Italy and Germany, revived by a ruling from Italy’s Court of Cassation.
Venezuela demands full financial compensation for any gas exports from the offshore Dragon field, reactivated following U.S. authorisation granted to Trinidad and Tobago.
Vistra Corp. finalises the purchase of seven natural gas power plants totalling 2.6 gigawatts, strengthening its presence in key US electricity markets.
Tidewater Midstream and Infrastructure has finalised the sale of its non-core Sylvan Lake site to Parallax Energy Operating for $5.5mn, with limited impact on its 2025 results.
U.S. gas deliveries to Mexico reached 7.5 billion cubic feet per day in May, driven by rising demand in the power sector and new cross-border interconnections.
The Algerian national company has restarted a key liquefaction unit in Skikda, strengthening its export capacity amid massive investment in the gas sector.
Doha and Washington warn Brussels about the consequences of EU sustainability requirements on liquefied natural gas exports, as the continent’s energy security remains under pressure.
The Volans-1X exploration well revealed a 26-metre productive zone in the Orange Basin, marking another hydrocarbon find for Azule Energy partners in 2025.
Faced with the absence of commercially viable results on the Guercif permit, Predator Oil & Gas has initiated a sale process while continuing technical evaluation of the gas potential.
According to the Oxford Institute for Energy Studies, a stable gas price of $6/MMBtu would boost global demand by 60 billion m³ in the short term and 120 billion m³ by 2035, mainly driven by Asia.
Kazakhstan’s Karachaganak gas field has reduced output by nearly one-third following an incident at a key Russian gas processing plant targeted by a Ukrainian drone strike.
Kinetiko Energy reports production levels above economic thresholds at two Mpumalanga wells, strengthening the technical viability and development potential of its liquefied natural gas project.
National Fuel Gas Company acquires CenterPoint Energy’s natural gas distribution business in Ohio, doubling the size of its regulated portfolio and expanding its footprint in the US Midwest.
The United States, Canada and Mexico together plan a 151% increase in liquefied natural gas export capacity, representing more than half of expected global additions by 2029.
European Union member states have approved the principle of a full ban on Russian natural gas imports, set to take effect by the end of 2027.
KLN strengthens its industrial project portfolio with progress on the WHPA platform in Libya, a major offshore site valued at over HK$10bn ($1.28bn), aimed at supporting regional gas supply.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.