European Gas Prices Retreat
European natural gas prices fell to €77.3/MWh, easing from an over three-week high after President Trump said the US would not resume military strikes on Iran before November’s midterm elections, easing fear over an escalation of the conflict. However, supply risks remain as Iran intensified tanker attacks in the Strait of Hormuz, a chokepoint for 20% of global LNG trade, raising concerns over the safety of transits. Meanwhile, cooler weather forecasts for Northwestern Europe could lift heating demand and support gas consumption. Europe's gas inventories have risen steadily in recent weeks, with facilities around 73% full, though they remain below year-ago levels. The region’s gas network operators said the system is sufficiently flexible to meet winter demand but warned that limited LNG supplies could push storage below 30% by winter’s end, increasing vulnerability to late-season cold snaps. Despite Friday’s pullback, prices are up over 3% this week, marking a second weekly gain.
3/MWh, easing from an over three-week high after President Trump said the US would not resume military strikes on Iran before November’s midterm elections, easing fear over an escalation of the conflict. However, supply risks remain as Iran intensified tanker attacks in the Strait of Hormuz, a chokepoint for 20% of global LNG trade, raising concerns over the safety of transits. Meanwhile, cooler weather forecasts for Northwestern Europe could lift heating demand and support gas consumption. Europe's gas inventories have risen steadily in recent weeks, with facilities around 73% full, though they remain below year-ago levels.
The region’s gas network operators said the system is sufficiently flexible to meet winter demand but warned that limited LNG supplies could push storage below 30% by winter’s end, increasing vulnerability to late-season cold snaps. Despite Friday’s pullback, prices are up over 3% this week, marking a second weekly gain.