Key insights
- European natural gas prices rose amid anticipation for the Trump-Xi meeting, with discussions expected to cover the Iran conflict and trade. Disruptions to LNG imports due to the conflict in Iran, including attacks on Qatari production, are impacting European supply. The meeting's outcome could influence energy markets, but the direct impact on US equities is limited, suggesting a slightly bearish sentiment due to potential energy price increases.
Investing.com - European natural gas prices inched higher on Thursday, as markets awaited signals around the Iran war from a hotly-anticipated meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping.
By 09:02 ET (13:02 GMT), the benchmark Dutch front-month contract at the TTF hub had risen by 1.0% to 47.370 euros per megawatt hour.
The British front-month contract was up by 1.1% at 116.25 pence per therm.
Speaking at a state banquet after a round of discussions in Beijing, Trump described Xi as a "friend" and his welcome in China as "magnificent." Talks so far between the two leaders have been "all good" for both countries, Trump said, inviting Xi to visit the U.S. in September.
Neither Trump nor Xi entered into specifics around their conversations, which are expected to revolve around major issues like trade, Taiwan, and artificial intelligence.
The talks are also expected to cover the U.S. and Israeli war on Iran, which has disrupted key oil flows to much of Asia for months. Some analysts have suggested that Trump may attempt to persuade China, a major importer of Iranian oil, to act as a guarantor on a lasting peace agreement, although it remains uncertain whether Beijing would want to play such a role.
Liquefied natural gas imports to Europe have been dented by the conflict, particularly after the fighting expanded to include attacks on crucial production facilities in Qatar, analysts have noted.