EMEA Natural Gas Update: Futures Edge Higher as Extreme Heat Offsets Hormuz Traffic Spike
European natural gas futures edged higher on Friday, hitting a three-week high, as extreme heat continues to bear down on the continent, helping offset the easing of tensions along the Strait of Hormuz. The front-month Dutch TTF contract rose 0.33% to 44.150 euros ($50.56) per megawatt-hour, while the UK front-month NBP contract gained 0.49% to 105.020 British pence ($1.40) per therm. Europe continued to experience record-breaking temperatures that have "shattered historical records," with the heatwave forecast to expand eastward into the heart of the continent, according to Severe Weather EU. The prolonged hot weather is expected to boost gas-fired power demand as electricity consumption for air conditioning and other cooling needs increases. This has helped offset bearish sentiment following "positive progress" in indirect talks between the US and Iran earlier this week in Doha, with the next round scheduled to take place after the funeral of the former Supreme Leader of Iran, according to an Al Jazeera report. Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, witnessed elevated traffic, with 27 vessels passing over.
European natural gas futures edged higher on Friday, hitting a three-week high, as extreme heat continues to bear down on the continent, helping offset the easing of tensions along the Strait of Hormuz.
The front-month Dutch TTF contract rose 0.33% to 44.150 euros ($50.56) per megawatt-hour, while the UK front-month NBP contract gained 0.49% to 105.020 British pence ($1.40) per therm.
Europe continued to experience record-breaking temperatures that have "shattered historical records," with the heatwave forecast to expand eastward into the heart of the continent, according to Severe Weather EU.
The prolonged hot weather is expected to boost gas-fired power demand as electricity consumption for air conditioning and other cooling needs increases.
This has helped offset bearish sentiment following "positive progress" in indirect talks between the US and Iran earlier this week in Doha, with the next round scheduled to take place after the funeral of the former Supreme Leader of Iran, according to an Al Jazeera report.
Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, witnessed elevated traffic, with 27 vessels passing over.