UK Natgas Prices Extend Drop

UK natural gas prices fell below 192 pence per therm on Thursday, marking a third consecutive session of declines and tracking broader weakness across energy markets after reports that Saudi Arabia was moving to restore a key oil pipeline. This reduced some of the risk premium in oil markets, with the softer sentiment spilling over into gas prices. Still, UK gas prices remained elevated and close to 2022 highs amid winter supply risks. The region is heading into winter with gas storage levels among the lowest seen in two decades, with underground sites only about 68% full, as sustained disruptions to LNG supplies from the Persian Gulf and record summer heatwaves have severely constrained efforts to replenish reserves. This raised concerns about whether gas supplies will be sufficient during the heating season.