FINWIRES · TerminalLIVE
FINWIRES

EU Backs $459 Million Spanish Support for Road Transport Amid Fuel Surge

By

The European Commission said on Monday it had approved a 402 million euros ($459 million) Spanish state aid scheme to help road transport companies offset higher fuel costs linked to the Middle East conflict.

The scheme, notified by Spain and cleared under the EU's Middle East Crisis Temporary State Aid Framework, will provide direct grants to companies in the road haulage sector affected by elevated fuel prices between March and December 2026.

Under the program, firms eligible for Spain's existing diesel tax refund for professionals may receive support covering up to 70% of additional fuel costs incurred between Mar. 1 and Jun. 30, 2026.

For companies not eligible for that tax refund, aid will either be capped at 50,000 euros per firm or cover up to 70% of extra fuel costs incurred through Dec. 31.

The Commission said the METSAF, adopted on Apr. 29, offers a temporary framework that allows EU governments to support sectors most exposed to the crisis, including agriculture, fisheries, transport, and energy-intensive industries. It will remain in force until Dec. 31.

The EU executive arm said the framework is intended to help shield vulnerable sectors from immediate shocks while longer-term decarbonization efforts continue, adding that it would keep the framework under review as developments in the Middle East unfold.

Related Articles

Commodities

Weekly US Natural Gas Prices Advance Despite Bearish Storage Build

US natural gas markets were set to end another week higher, despite the higher-than-expected storage build.In the futures market, the Nymex front-month August contract rose to $3.287 per million British thermal unit, from $3.20/MMBtu on June 19. The July contract settled at $3.231/MMBtu on Friday.Natural gas spot prices fell by $0.10/MMBtu to $3.22/MMBtu during the week ended June 24, from $3.32/MMBtu the prior week, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released Thursday.Prices were mixed across major regional hubs, from a decrease of $1.32/MMBtu at SoCal Border-Ehrenberg to an increase of $0.14/MMBtu at Chicago Citygate.While prices dropped at the Waha Hub in the Permian Basin by $0.16/MMBtu to $1.50/MMBtu, it remained positive for the seventh consecutive trading day, the longest such streak since late January of this year, with Mexican pipeline outlets providing much-needed support.US LNG feedgas flows have similarly recovered strongly after being under pressure over the past few weeks, as several leading facilities underwent spring maintenance.Flows averaged over 19 billion cubic feet per day throughout the week, ahead of the 30-day moving average of 18.21 Bcf per day, according to the Bloomberg LNG Feedgas Model.The net injection into storage for the week ended June 19 was 76 Bcf, ahead of last week's 73 Bcf, bringing total gas inventories to 2,835 Bcf, according to EIA data.The net build was significantly above forecasts, which expected just 67 Bcf in injections, and above the five-year average for this period, at 75 Bcf. It, however, fell short of the 96 Bcf in net injections during the same week last year, according to data compiled by Investing.com.All regions reported a net injection during the week, with the Midwest reporting the largest increase at 34 Bcf, followed by the Eastern and South Central regions at 26 and 13 Bcf, respectively.At 2,835 Bcf, US working gas inventories were 49 Bcf, or 2% below the corresponding period a year ago, while reporting a surplus of 152 Bcf, or 6% compared to the five-year average for this period.According to Pinebrook Energy Advisors, the current storage situation offers a strong cushion, even as "the pace of storage growth continues to consistently lag 2025."The analysts also expect next week's storage figures to "show a sizable injection" before warm weather conditions begin to weigh on storage builds.Weather forecasts call for above-normal temperatures across over two-thirds of the country from July 3 to July 9, according to the National Weather Service, which is expected to increase cooling demand and, in turn, higher gas-fired power generation.A total of 35 LNG carriers departed US ports during the week, down from 36 the previous week, with a combined capacity of 135 Bcf, 2 Bcf higher than a week earlier.Meanwhile, the US gas rig count increased by three from 122 the previous week to 125 in the week ending June 26, according to data from Baker Hughes (BKR) released Friday. That compares with 109 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by 21 to 770 from 749 the previous week.In international markets, European TTF gas prices averaged $13.82/MMBtu for the week ended June 24, $1.29/MMBtu lower than the previous week. Meanwhile, the Japan-Korea Marker averaged $15.62/MMBtu, about $2.04/MMBtu below the prior week.

$BKR
Commodities

US Natural Gas Update: Futures Price Decline Despite Heat Dome Forecasts

US natural gas futures were down in late Friday trade as the July NYMEX Henry Hub contract expired and the August contract became the front month, with forecasts for extreme heat next week offset by comfortable supply fundamentals.The July contract settled at $3.231 per million British thermal units at expiration, while August edged 0.24% lower to $3.287/MMBtu. The continuous Henry Hub contract fell 3.32% to $3.232/MMBtu.According to Energy Buyers Guide, July futures dropped more than 11 cents on Friday, settling more than 20 cents below the session high after heavy selling in the final hour. Despite the late decline, the contract posted the highest expiration settlement since February, lifting the average 2026 contract expiration price to $3.863/MMBtu. July also marked the fifth consecutive contract to expire below its 2025 counterpart, though by only three cents.Weather forecasts continued to underpin expectations of strong demand. The US National Weather Service said much of the eastern US will see temperatures in the 90s and low 100s degrees Fahrenheit next week, with heat index values reaching 105-110 degrees Fahrenheit in many areas. Overnight temperatures are also expected to remain unusually warm.Energy Buyers Guide said power-sector gas demand should reach summer highs but noted traders remain focused on whether the heat persists beyond next week.Supply data remained bearish. Barchart, citing BNEF, said US dry gas production rose 0.5 Bcf/d to 112.5 Bcf/d on Friday, up 4.7% from a year earlier. LNG feedgas deliveries increased 4.5% week over week to 19.1 Bcf/d as maintenance at export facilities eased.The market also continued to digest Thursday's EIA storage report, which showed a 76 Bcf inventory build for the week ended June 19, above expectations for a 69 Bcf injection. US gas inventories were 5.7% above the five-year seasonal average, indicating supplies remain adequate despite stronger summer demand prospects.

Commodities

Money Managers Little Changed in Net Long Positions in Biofuel Futures, Options Markets, CFTC Says

Money managers make little changes to net long positions in the soybean oil futures and options markets, D4 and D6 Renewable Identification Numbers, and ethanol futures and options markets, according to the Commodities Futures Trading Commission's weekly Commitments of Traders Report.The weekly COT Report, as of the week ending June 23, showed that money managers are net long, a bet that the market will go higher, in the California Low Carbon Fuel Standard market by 62,470 contracts, while producers/merchants/processors/users or physical market participants are net short by 79,273 contracts.The COT report showed that money managers are net long by 1,504 contracts in the D6 RIN Current Year futures and options markets. The physical market participants are net long by 242 contracts.In the D4 Biodiesel RIN Current Year futures and options markets, money managers hold a net long position of 1,705, while industry participants are net short by 2,167 contracts.For ethanol, money managers are net long by 5,114 contracts, while commercial market participants are net short by 5,466 contracts.Money managers are net long soybean oil futures and options by 103,589 contracts, while industry participants are net short by 185,980 contracts.Money managers are net short Malaysian palm oil futures by 3,464 contracts, while the physical market participants are net long by 8,285 contracts.