European gas prices fall to their lowest level in a week, while Brent crude also falls

Freeport LNG, which is one of the largest suppliers in the US, has suspended exports since Hurricane Beryl made landfall in early July and disrupted power supplies across the state.

However, the factory is slowly ramping up production and several scheduled deliveries have been cancelled.

European gas prices were volatile in reaction to the Freeport disruption, highlighting Europe’s increased reliance on liquefied natural gas imports.

“The disruption clearly shows how prone the TTF market remains to upside risks based on the ‘fear’ of not having enough supply,” said Florence Schmit, energy strategist at Rabobank.

“That fear is still ingrained in the market, even though there is currently enough supply to get through.”

For now, storage sites across the continent are filling up, with stocks nearly 83% full.

Dutch front-month futures, Europe’s gas benchmark, fell 2.9 percent to 31.23 euros per megawatt-hour in early trading.

Meanwhile, oil prices fell on Monday after Joe Biden announced he would not seek a second term as US president, while investors weighed the possibility of a US interest rate cut, potentially as early as September.

Brent crude futures were down 68 cents, or 0.82%, at $81.95 a barrel and have remained relatively flat over the past month – fluctuating between $82 and $88 a barrel.

The US Federal Reserve is due to review policy on July 30-31, when investors expect to keep interest rates on hold, although there were signs of a possible cut in September.

“The risk of delaying interest rate cuts is linked to a contracting economy, which could lead to a recession,” said Razan Hilal, market analyst at Forex.com.

This scenario signals downward implications for oil demand and prices

Brent crude futures neared their lowest level since mid-June after falling more than 3 percent in the previous session.

Renewed hopes for a ceasefire in Gaza also weighed on Brent crude prices as US Secretary of State Antony Blinken suggested a long-awaited truce between Israel and Hamas was close.

Brent crude is expected to trade at $86.91 by the end of this quarter, according to Trading Economics global macro models and analyst expectations.

• Bloomberg, Reuters and Irish Examiner reporting