European gas prices rise after Germany issues instructions to reject gas shipments from Russia.

On Thursday, the Financial Times published a report - citing a letter from the German Ministry of Economy - stating that the ministry had instructed the state-owned Deutsche Energy Station to refuse any shipments of liquefied natural gas coming from Russia. The newspaper reported that the ministry clarified in the letter that this decision will be effective immediately and until further notice, noting that this is due to the higher public interest of Germany. While Germany has not imported liquefied natural gas from Russia since the beginning of its war with Ukraine, the European Union still receives about 20% of its liquefied natural gas needs from Russia, despite efforts to find alternative suppliers. After dropping to its lowest level in 10 years in 2023, gas consumption in European countries shrank by 5.4% year-on-year during the first half of 2024, reaching 232.1 billion cubic meters, with gas consumption in EU countries down by 3.2%. Norway and the United Kingdom recorded significant declines in gas consumption in the first half of 2024, following decreases of 36% and 13%. On the trading front, Dutch futures gas prices rose by 4.04% to their highest levels since early November in response to the decision, reaching €45.674 per megawatt-hour, while British gas contracts increased by 3.9%, recording £115.34 per million British thermal units.