European gas continues to climb 🔥📈

European gas contracts are rising by nearly 3% in Monday’s session, while US gas is up just under 1%.

This is due to specific factors currently affecting Europe, which is dependent on gas imports.

Technical analysis of NATGAS.EU (D1)

On the chart, the price can be seen approaching the upper boundary of a narrowing upward trend. If resistance is broken, there is a significant probability that the uptrend will continue. In that scenario, the most clearly defined resistance zone is a broad range between approximately 76 and 81 euros. For sellers, support lies primarily at the lower boundary of the trend and at the level of the most recent peaks, around 64 euros. Source: xStation5

• Supply tensions triggered by the conflict in the Persian Gulf have been a known factor for many months. Today’s noticeable, though not yet panic-driven, price increase may have been prompted by Goldman Sachs publications.
• The investment firm points mainly to relatively low storage levels in Europe. As of today, Reuters reports average storage at only 62%, versus 74% a year ago.
• Goldman analysts note that, given low inventories, competition for supplies from Asia, and the risk of a harsh winter, prices could rise significantly even from current levels.
• European Commission representatives are trying to reassure markets, stating that “there is currently no direct threat to supplies.”