empty
04.03.2025 10:48 AM
Relaunch of Nord Stream 2: reality or idle talk?

Gas prices spiked sharply after news broke that US President Donald Trump had officially implemented the promised tariffs on Mexico, Canada, and China. This development has raised serious concerns in global markets, as these countries are major trading partners of the US, and the tariff imposition could dent economic activity, leading to a decline in gas demand. Besides, the price surge is driven by other factors, including seasonal demand increases and supply reductions.

This image is no longer relevant

Economists warn that a further uptrend in gas prices could negatively affect consumers and businesses, driving up costs for heating, electricity, and manufacturing. This, in turn, could weaken consumer demand and slow economic growth.

According to Gazprom, Europe is depleting its underground gas storage reserves at a brisk pace. The average withdrawal rate is 36% higher than last season and 22% above the 10-year average. Despite efforts to diversify supplies and fill storage facilities, Europe's dependence on stable gas supplies remains critical. The rapid depletion of reserves could lead to shortages sooner than expected, further exacerbated by geopolitical tensions and supply uncertainties. Increased gas withdrawals from storage continue to pressure the European energy market, driving prices higher and worsening inflationary trends.

It is evident that European governments must urgently implement energy-saving measures and seek alternative energy sources. Moreover, close cooperation among EU member states is essential to ensure fair resource distribution and prevent shortages.

Nord Stream 2 Revival? US investors show interest, but the EU resists

Recent discussions about reviving the Nord Stream 2 project, allegedly backed by US investors, were met with strong opposition from EU representatives. Former Nord Stream 2 AG CEO Matthias Warnig has been pushing for the pipeline's revival, arguing that it remains a highly promising direction. Warnig, who has strong ties to Russian business circles, insists that the project could be restarted with US investor participation, despite harsh criticism from European policymakers and existing sanctions. He emphasized that Europe's energy security still depends on gas supplies, and Nord Stream 2 could play a crucial role in meeting demand.

This image is no longer relevant

However, the EU authorities maintain a firm stance that Nord Stream 2 is a dead project with no justification for its revival. European officials argue that EU nations have successfully diversified their energy sources and reduced dependence on Russian gas, despite recent data suggesting otherwise. Moreover, any attempts to reboot the project would face severe opposition and additional sanctions. European policymakers insist that Russia has historically used energy as a political weapon, and they are determined to put an end to this practice.

Technical analysis of natural gas

For buyers, reclaiming 4.224 is essential. A breakout above this level would open the way toward 4.373, followed by a larger target at 4.490. The ultimate bullish target stands at 4.510. If the decline continues, the first support level is around 4.062. A breakdown of this range could quickly push prices lower to 3.915, with the final downside target at 3.734.

Miroslaw Bawulski,
Analytical expert of InstaForex
© 2007-2025
Gas
Summary
Buy
Urgency
1 day
Analytic
Maxim Magdalinin
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump Keeps Hitting a Wall

There's a saying: "An irresistible force meets an immovable object." It describes an irreconcilable standoff where neither side is willing to compromise. In my view, Trump's "scythe," with which

Chin Zhao 00:12 2025-06-24 UTC+2

Should We Expect De-escalation in the Middle East?

The market has absorbed the news of U.S. strikes on Iran's nuclear facilities quite resiliently. Why did this happen, and why was the reaction relatively muted? These questions are unlikely

Chin Zhao 00:12 2025-06-24 UTC+2

What Will Powell Say?

Starting June 24, Fed Chair Jerome Powell will address Congress over two days, delivering the semiannual monetary policy report. On Tuesday, he will speak before the Senate Banking Committee

Irina Manzenko 00:12 2025-06-24 UTC+2

The Euro Gets a Knife in the Back

Trouble never comes alone. European industry is beginning to lose steam after rapid growth driven by a front-loaded surge in U.S. imports. The euro area is a net oil importer

Marek Petkovich 00:11 2025-06-24 UTC+2

XAU/USD. Analysis and Forecast

Today, gold is attracting new sellers. Amid a sharp escalation in the conflict between Iran and Israel, the United States conducted airstrikes on three Iranian nuclear facilities in Fordow, Natanz

Irina Yanina 17:59 2025-06-23 UTC+2

USD/JPY. Analysis and Forecast. The Japanese Yen Maintains an Intraday Bearish Outlook

Today, Monday, selling pressure on the Japanese yen dominates, driven by several factors. Traders continue to push back expectations of a potential rate hike by the Bank of Japan, assuming

Irina Yanina 17:56 2025-06-23 UTC+2

USD/CHF. Analysis and Forecast

At the moment, the U.S. Dollar Index (DXY) has reached a new two-week high, driven by hawkish signals from the Federal Reserve. The U.S. central bank has maintained its forecast

Irina Yanina 17:51 2025-06-23 UTC+2

Bitcoin longing for new highs, but something stymies

Bitcoin was created as a way to preserve value in times of turmoil, especially against the backdrop of weakening fiat currencies. It was believed that the arrival of institutional investors

Marek Petkovich 12:23 2025-06-23 UTC+2

Market fears retaliation

Hope for the best, prepare for the worst. Since the onset of the Israel-Iran conflict, the market seems to have largely ignored the severity of the situation. Investor reaction

Marek Petkovich 10:36 2025-06-23 UTC+2

The U.S. Joins the Iran-Israel War. What's Next for the Markets? (Limited downside potential for #NDX and #SPX contracts possible)

The United States could not abandon its satellite and Middle Eastern proxy—Israel—to face Iran alone. On Sunday, it struck Iran's nuclear facilities, though these strikes failed to achieve their objectives

Pati Gani 09:51 2025-06-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.