NATGAS: European Gas Down On Supply Hopes, US Rises As Reduces Output
European gas has followed oil lower this week on hopes that diplomacy on the sidelines of this week's UN gathering will result in a reopening of the Strait of Hormuz. In contrast, US prices are sharply higher due to cut backs in production to their lowest since July due to the current "shoulder season". * President Trump and Saudi-owned Al Arabiya said that US and Iranian delegations met and talks were productive. The latter reported that Iran sees multiple steps and wants sanctions and the blockade eased before reopening the Strait. However, Trump threatened Iran with "annihilation" if it doesn't reach a deal. Iran's President Pezeshkian is due to speak to the UN Wednesday. * US special envoy Witkoff said that lengthy talks have taken place with the Iranian delegation through mediators and they are set to continue. * Dutch TTF fell 2.5% to EUR 71.435 on Tuesday after reaching EUR 68.650, lowest this month. It is currently around EUR 71.940. Prices peaked at EUR 84.50 on 14 September. * An increase in global LNG shipments would be very welcome even if they only occur later in the northern winter. European storage has only just reached 70% full, a point it was at in early August las
European gas has followed oil lower this week on hopes that diplomacy on the sidelines of this week's UN gathering will result in a reopening of the Strait of Hormuz. In contrast, US prices are sharply higher due to cut backs in production to their lowest since July due to the current "shoulder season". * President Trump and Saudi-owned Al Arabiya said that US and Iranian delegations met and talks were productive. The latter reported that Iran sees multiple steps and wants sanctions and the blockade eased before reopening the Strait.
However, Trump threatened Iran with "annihilation" if it doesn't reach a deal. Iran's President Pezeshkian is due to speak to the UN Wednesday. * US special envoy Witkoff said that lengthy talks have taken place with the Iranian delegation through mediators and they are set to continue. 650, lowest this month.
940. 50 on 14 September. * An increase in global LNG shipments would be very welcome even if they only occur later in the northern winter. European storage has only just reached 70% full, a point it was at in early August last year.
* Ukrainian President Zelenskyy has asked President Trump for a military package including air defence items. The US wants Ukraine/Russia to cease targeting energy infrastructure. 025. 00 since 8 September.
The outlook is uncertain though given that the US is between the cooling and heating seasons and a storm heading towards the northeast may increase heating demand but could also cause blackouts reducing power consumption.