UK Natgas Prices Rise Further

UK natural gas prices climbed above 206 pence per therm on Tuesday, their highest level since late 2022, amid intensifying disruptions around the Strait of Hormuz and concerns over still-below-normal gas inventories. The strait remains closed to most commercial traffic amid ongoing military conflict and security threats, while diplomatic efforts to secure its reopening have stalled, raising fears that disruptions to shipments could persist. LNG tanker traffic through the Strait has fallen sharply, tightening global supplies and intensifying competition with Asia and other buyers for available cargoes. Meanwhile, ongoing maintenance at Norwegian gas facilities is also adding another layer of uncertainty to Europe’s winter supply balance. Europe’s gas storage levels stand at around 68% of capacity, still below the seasonal average at a time when inventories would typically be close to maximum capacity.