UK Natural Gas Prices Rebound
UK natural gas prices rose toward 193 pence per therm on Friday, rebounding after three straight sessions of declines, with depleted reserves and disruptions to LNG shipments remaining in focus. The region is entering winter with low storage levels after the US-Iran war severely curtailed LNG supplies from the Persian Gulf and record summer heatwaves hampered efforts to rebuild inventories. Underground storage facilities were only around 68% full, well below seasonal averages and the EU’s target of 80% capacity by December. Strong demand from Asia and other buyers could also drive more intense competition for LNG cargoes when colder weather sets in, leaving the region more exposed to price spikes. Despite Friday’s gain, UK gas prices have fallen more than 2% this week, their first weekly decline in six weeks.
UK natural gas prices rose toward 193 pence per therm on Friday, rebounding after three straight sessions of declines, with depleted reserves and disruptions to LNG shipments remaining in focus. The region is entering winter with low storage levels after the US-Iran war severely curtailed LNG supplies from the Persian Gulf and record summer heatwaves hampered efforts to rebuild inventories. Underground storage facilities were only around 68% full, well below seasonal averages and the EU’s target of 80% capacity by December.
Strong demand from Asia and other buyers could also drive more intense competition for LNG cargoes when colder weather sets in, leaving the region more exposed to price spikes. Despite Friday’s gain, UK gas prices have fallen more than 2% this week, their first weekly decline in six weeks.