European Natural Gas Prices Stabilize After Sharp Drop
European natural gas prices stabilized at €95/MWh on Tuesday after tumbling more than 8% in the previous session on optimism over a potential diplomatic breakthrough in the Middle East, following signals from the US and Iran of a willingness to engage in peace talks. President Trump on Monday hinted at progress in negotiations to prevent a renewed conflict, while Tehran said "intensive" exchanges were underway and offered to reopen the Strait of Hormuz under strict conditions. Still, investors remained cautious as attacks on shipping in the key waterway continued. Meanwhile, Europe's gas supply remained tight, with storage levels standing at 74.56% as of November 2, significantly below historical averages. Forecasts of unseasonably cold temperatures across Northern and Central Europe this week are also expected to lift heating demand, which could prompt utilities to start early withdrawals from storage.
European natural gas prices stabilized at €95/MWh on Tuesday after tumbling more than 8% in the previous session on optimism over a potential diplomatic breakthrough in the Middle East, following signals from the US and Iran of a willingness to engage in peace talks. President Trump on Monday hinted at progress in negotiations to prevent a renewed conflict, while Tehran said "intensive" exchanges were underway and offered to reopen the Strait of Hormuz under strict conditions. Still, investors remained cautious as attacks on shipping in the key waterway continued.
Meanwhile, Europe's gas supply remained tight, with storage levels standing at 74.56% as of November 2, significantly below historical averages. Forecasts of unseasonably cold temperatures across Northern and Central Europe this week are also expected to lift heating demand, which could prompt utilities to start early withdrawals from storage.