European Gas Falls on Hormuz Deal Hopes
European natural gas prices fell to €74.4 per megawatt-hour on Friday, giving back some of the previous session’s gains amid reports of US-Iran discussions over a phased agreement to reopen the Strait of Hormuz and end the US blockade. The strait remains a major sticking point in efforts to resolve the nearly seven-month conflict, with neither side willing to relinquish control of the key waterway. LNG flows from the Persian Gulf remain severely disrupted, intensifying competition between Europe and Asia for limited global supplies as the region races to rebuild inventories ahead of the winter heating season. European gas storage is currently just over 70% full, below both the seasonal norm and the region’s target, leaving the market vulnerable to further supply disruptions. Maintenance in Norway is also curbing pipeline supplies to Europe, tightening the market further. European gas prices have declined 0.6% over the week.
4 per megawatt-hour on Friday, giving back some of the previous session’s gains amid reports of US-Iran discussions over a phased agreement to reopen the Strait of Hormuz and end the US blockade. The strait remains a major sticking point in efforts to resolve the nearly seven-month conflict, with neither side willing to relinquish control of the key waterway. LNG flows from the Persian Gulf remain severely disrupted, intensifying competition between Europe and Asia for limited global supplies as the region races to rebuild inventories ahead of the winter heating season.
European gas storage is currently just over 70% full, below both the seasonal norm and the region’s target, leaving the market vulnerable to further supply disruptions. Maintenance in Norway is also curbing pipeline supplies to Europe, tightening the market further. 6% over the week.