In brief

• After the US midterm primaries, oil and gas prices fell by more than 16% over the week.
• The "Brent" price dropped to $98.32 per barrel, and TTF gas to €85.59 per MWh.
• EU gas storage was 73% full on Friday, and the "Nasdaq Composite" fell 3.4%.

Energy price decline

Last week, the oil and gas markets saw one of the sharpest declines in recent years. Market participants had hoped that after the Democrats' victory in the US congressional by-elections, which gave them control of both chambers of Congress, Washington would be less inclined to escalate the conflict with Iran, so prices began to fall as the risk of war diminished (JAV rinkimai smukdė energijos kainas ir technologijų akcijas – Bernardinai.lt).

Oil and gas prices

The price of Brent crude fell 16.4% over the week, to $98.32 per barrel. On Wednesday alone it dropped almost 9%. This is the largest weekly decline since the start of the pandemic in 2020. The price of European natural gas contracts (TTF) fell 17.7%, to €85.59 per megawatt-hour.

Market price indicators

• Brent crude: –16.4% over the week, $98.32 per barrel
• TTF gas: –17.7%, €85.59 per MWh

Factors limiting the price decline

The price decline continues to be held back by attacks on oil tankers near the Strait of Hormuz, which connects the Persian Gulf with international shipping routes. For this reason, the war risk premium has not disappeared entirely.

European gas storage

On Friday, EU gas storage was only 73% full, significantly lower than usual for this time of year over the past five years.

Technology companies

The US stock market ended the week with declines. The Nasdaq Composite index, based on technology companies, lost 3.4%. Investors were concerned that investment in artificial intelligence (AI) might slow down. European stock markets proved more resilient than the American one during this period.