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

The Market Took a Step Back

The longest winning streak of the S&P 500 in two decades has come to an end. But who's responsible? The Federal Reserve, which plans to keep rates unchanged

Marek Petkovich 10:16 2025-05-06 UTC+2

Markets Anxiously Await the Fed's Monetary Policy Meeting (Potential for Renewed Growth in Bitcoin and #NDX)

Markets remain tense. The U.S. Dollar Index and the cryptocurrency market are stagnating, caught between opposing forces. Investors are tensely awaiting the outcome of the Federal Reserve's monetary policy meeting

Pati Gani 10:02 2025-05-06 UTC+2

GBP/USD Overview – May 6: Trump Goes After the Film Industry

The GBP/USD currency pair traded upward during the first half of Monday and downward during the second half. While the U.S. dollar didn't lose much this time, its brief attempt

Paolo Greco 07:04 2025-05-06 UTC+2

EUR/USD Overview – May 6: The Protest Against Donald Trump Continues

The EUR/USD currency pair began a new upward cycle on Monday. At this point, no one is likely surprised by another drop in the U.S. dollar. The market started selling

Paolo Greco 07:04 2025-05-06 UTC+2

What to Pay Attention to on May 6? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Tuesday. In the Eurozone and Germany, the second estimate of April's services PMI will be published, but these are unlikely to attract

Paolo Greco 05:49 2025-05-06 UTC+2

Fed Rate Cut Probability Is Near Zero

This week marks the third Federal Reserve meeting of the year. At the first two meetings, monetary policy parameters remained unchanged, and there is virtually no chance of a rate

Chin Zhao 00:50 2025-05-06 UTC+2

The Dollar Sell-Off Shows No Signs of Slowing Down

The latest CFTC report reveals that the dollar sell-off continues unabated. Weekly changes against major currencies amounted to -$3.1 billion, bringing the total accumulated short position to -$17.1 billion

Kuvat Raharjo 00:50 2025-05-06 UTC+2

GBP/USD. The Pound and Politics

The pound reacted negatively to the results of the local elections in the UK, where the right-wing Reform UK party secured a convincing victory in many districts. However, the British

Irina Manzenko 00:50 2025-05-06 UTC+2

XAU/USD. Analysis and Forecast

Gold continues to show resilience, climbing above the key psychological level of $3300. Geopolitical tensions stemming from the prolonged Russia–Ukraine conflict and escalating hostilities in the Middle East continue

Irina Yanina 17:45 2025-05-05 UTC+2

USD/CHF: Analysis and Forecast

The USD/CHF pair remains under pressure at the start of the new week, attracting sellers for the second day in a row, weighed down by several factors. However, spot prices

Irina Yanina 17:35 2025-05-05 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.