Asian and European natural gas prices climbed Monday after the United States and China agreed to lower tariffs for three months while negotiations to reach a broader trade agreement continue.
Expand
The prompt Title Transfer Facility (TTF) contract in Europe gained 2% to finish at $11.49/MMBtu. The trade war weighed on commodity prices last month, but TTF has gained over the past two weeks as the U.S. considered how to deescalate tensions.
“This marks a substantial cooling of trade tensions between the U.S. and China. However, questions remain for markets as to what the end game will be, as the measure will be operational for 90 days, and what the eventual level of tariffs will be,” said ING Groep NV analysts on Monday. “Uncertainty is still high, and volatility is likely to remain elevated across commodities markets.”