European Natural Gas Prices Hit 1-Month Low

European natural gas prices fell toward €71 per megawatt-hour, the lowest in a month, as weaker Chinese demand eased pressure on a tight global market. China’s LNG imports are expected to decline for a second consecutive month, with September deliveries forecast at about 5.3 million tons, roughly 8% below a year earlier, as high prices linked to the Middle East conflict discourage spot purchases. Meanwhile, Europe faces increasing pressure to rebuild unusually low gas inventories before winter, particularly as around a fifth of global LNG normally transits the Strait of Hormuz. EU storage facilities are about 71% full, well below the five-year seasonal average of 87%, while Germany’s sites are just above 57%. The EU has urged countries to conserve energy and continue filling storage. QatarEnergy extended its force majeure on LNG supplies to Italy’s Edison until December, while Pakistan’s supply arrangements have been extended into November amid shipping difficulties through Hormuz.