UK Natural Gas Prices Rise to Over 3-Week High
UK natural gas prices climbed above 198 pence per therm, their highest level in more than three weeks, as continued tanker attacks in the Strait of Hormuz heightened supply concerns. Iran has sharply increased attacks on commercial and energy vessels transiting the waterway, underscoring persistent shipping risks and threatening to disrupt the broader recovery in fuel deliveries. Adding to the upward pressure, forecasts point to cooler weather across Northwestern Europe, which could boost heating demand and increase gas consumption. This weather-driven support comes despite steady additions to European gas storage reserves, with facilities now around 73% full, although inventories remain below levels seen at the same point last year. Meanwhile, the surge in wind generation in September has reduced Britain’s reliance on gas-fired power, but this was not enough to insulate the country from the broader price pressures stemming from disruptions to Gulf supply.
UK natural gas prices climbed above 198 pence per therm, their highest level in more than three weeks, as continued tanker attacks in the Strait of Hormuz heightened supply concerns. Iran has sharply increased attacks on commercial and energy vessels transiting the waterway, underscoring persistent shipping risks and threatening to disrupt the broader recovery in fuel deliveries. Adding to the upward pressure, forecasts point to cooler weather across Northwestern Europe, which could boost heating demand and increase gas consumption.
This weather-driven support comes despite steady additions to European gas storage reserves, with facilities now around 73% full, although inventories remain below levels seen at the same point last year. Meanwhile, the surge in wind generation in September has reduced Britain’s reliance on gas-fired power, but this was not enough to insulate the country from the broader price pressures stemming from disruptions to Gulf supply.