Europe gas: Global trade fears fuel market volatility

Dutch and British gas prices recouped some earlier losses after rising on Monday before falling back again, as fears of a global trade war leading to weaker energy demand drive volatility.

The benchmark Dutch front-month contract was down €0.55 to €35.90 per megawatt hour (MWh) or $11.55/MMBtu by 1552 GMT, LSEG data showed.

The contract hit €33.65/MWh earlier, its lowest level since September 2024.

The Dutch June contract was down €0.67 at €36.08/MWh.

The British day-ahead contract was down 2.09 pence at 87.41p/therm.

U.S. President Donald Trump's sweeping tariff plans hammered global financial markets on Monday after he warned foreign governments they would have to pay "a lot of money" to lift the levies that he called "medicine."

"Gas was following equities, there's a lot of uncertainty at the moment," a gas trader told media.

The benchmark contract fell around 9% on Friday as China announced reciprocal tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession.

Expectations of warmer temperatures were also weighing on the gas market.

"Gas demand in Local Distribution Zones (LDZ) continued to drop amid above-normal temperatures in most European countries," analyst at Engie EnergyScan said in a daily research note.

Europe’s gas storage sites ended the winter heating season on March 31 almost two-thirds empty and the current weak prices are expected to encourage more injections into storage.

"Fears of being able to refill gas storages this summer have taken a change with advantage being taken to get that process underway," consultancy Auxilione said in a daily research note.

In the European carbon market, the benchmark contract was down €1.42 at €62.40 a metric ton.

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