UK natural gas prices fall below 196p/therm but stay near multi-year highs
UK natural gas prices dropped below 196 pence per therm on Thursday but remained close to the highest level in more than three years. The move reflects supply concerns as attacks in the Middle East disrupt LNG shipments through the Strait of Hormuz and Europe’s inventories stay below historical norms.
UK natural gas prices fell below 196 pence per therm on Thursday, but stayed near their highest level in more than three years as supply worries persisted. European gas inventories remain below historical norms, while attacks in the Middle East are disrupting LNG shipments through the Strait of Hormuz, a route that handles roughly 20% of global gas flows, mainly from Qatar. Iran said it attacked 10 ships near the strait and warned of further strikes if Washington keeps attacking its territory. Maintenance in Norway and lower Algerian flows to Italy are also limiting pipeline supplies to Europe.
With Europe nearing the end of its summer storage injection season, the supply outlook points to tighter competition for gas ahead of winter.