Gas prices declined despite rising geopolitical tensions following Vladimir Putin’s signing of a law permitting a nuclear response to long-range missile attacks on Russian territory.
Dutch front-month futures, the European benchmark for natural gas, dropped by 0.7% to below €47 per megawatt-hour after hitting a one-year high on Monday.
Earlier concerns had emerged that Kremlin-backed Gazprom might cut supplies through Ukraine in retaliation for an arbitration ruling favouring Austrian supplier OMV earlier this month.
However, supply flows have remained stable, and prices have not been impacted by Putin’s revision of Russia’s nuclear doctrine to allow a nuclear response to long-range missile strikes.
Oil prices remain elevated following a power outage at Europe’s largest oilfield.
Brent crude, the global benchmark, hovered near $73 a barrel as Equinor began gradually resuming production at the Johan Sverdrup oil field in the North Sea.
Crude prices had climbed 3.2% on Monday, driven by a weaker dollar that made commodities more appealing to investors. Prices also remain supported by escalating tensions in Ukraine after Russia revised its nuclear doctrine.
However, the International Energy Agency has projected a potential surplus of over 1 million barrels per day next year, citing weakening demand from China.
