European natural gas prices declined again Tuesday despite geopolitical tensions between Russia and Ukraine, which showed no signs of relenting.

Mild weather and strong wind output also dragged down prices Monday, reversing last week’s gains that came as the market baked in the risk to European supplies from a broader conflict between Russia and Ukraine. Russian gas imports were nominated at 243 million cubic meters Tuesday, the highest level since December. Along with steady flows from Norway and the likelihood of strong liquefied natural gas (LNG) imports, Europe is seen well supplied in the near term. 

Still, low storage inventories and the standoff between Russia and Ukraine have the market walking a tightrope. 

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