UK Natgas Prices Fall on Hormuz Deal Hopes
UK natural gas prices fell below 186 pence per therm on Friday, reversing part 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. UK gas prices have fallen more than 6% over the week.
UK natural gas prices fell below 186 pence per therm on Friday, reversing part 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. UK gas prices have fallen more than 6% over the week.