The USA wins the European War
Gas prices have increased by almost 5.5% so far, at the beginning of the week, to trade above $8. As the conflict grew in Ukraine and more countries in Europe turned to NATO, market participants counted on a more extended war period.
We heard about Sweden and Denmark's NATO applications in the last few days. A few hours ago, we had a report that Sweden's two largest parties are holding a joint news conference to announce their agreement and cooperation for this application, which is rare in Sweden. However, the Left Party and the Greens remain opposed to the application, and we better wait for final voting.
Before Sweden, Demark also started this process, and it is likely to see both countries submit their formal application before the end of this week.
As a reaction, Russian President Vladimir Putin has said, while Russia has no issue with Finland and Sweden, Russia will have a response to the expansion of NATO. Russia believes that this expansionary is against Russia and favors the USA.
At the same summit, Belarusian President Alexander Lukashenko urged other members of the Collective Security Treaty Organization (CSTO) in Moscow to stand united. CSTO members are Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Tajikistan.
While geopolitical tensions increased the Natural Gas price, Sempra Energy (NYSE: SRE) announced that it would sell three million tons of liquefied natural gas (LNG) each year to Poland after the Russian gas cut. This deal will be for 20 years, and it would be America's first major gas deal with European after increasing tensions there.
As much as tensions levels increase, more interest will get US gas, and with the continuation of this process, the United States will be the world's largest LNG exporter. Overall, in the short and mid-term, we can see more demand for LNG, which will lift the prices and hold the bulls for the longer term.
From the technical point of view, it is in a clear uptrend, with an expected market volume to confirm the overall bullish tendency.
