European Natural Gas Prices Drop Further
European natural gas prices fell to €85/MWh on Thursday, extending their losses to about 18% so far this week and hovering at their lowest level in over three weeks. The decline reflects growing optimism over diplomatic efforts to resolve the US-Iran war, with Qatar continuing to mediate between the two sides. A sweeping Democratic victory in the US midterm elections also eased concerns about further military escalation, as the results could give Democrats greater influence over government spending, potentially limiting President Trump's ability to sustain military operations against Iran. However, supply tightness persists, as LNG deliveries from the Persian Gulf remain disrupted. The bloc is entering winter with its lowest gas storage levels in more than a decade, with inventories standing at 74.33% of capacity as of November 4 and well below the minimum target of 80%. Meanwhile, forecasts of colder temperatures across Northwest Europe are likely to boost heating demand.
European natural gas prices fell to €85/MWh on Thursday, extending their losses to about 18% so far this week and hovering at their lowest level in over three weeks. The decline reflects growing optimism over diplomatic efforts to resolve the US-Iran war, with Qatar continuing to mediate between the two sides. A sweeping Democratic victory in the US midterm elections also eased concerns about further military escalation, as the results could give Democrats greater influence over government spending, potentially limiting President Trump's ability to sustain military operations against Iran.
However, supply tightness persists, as LNG deliveries from the Persian Gulf remain disrupted. The bloc is entering winter with its lowest gas storage levels in more than a decade, with inventories standing at 74.33% of capacity as of November 4 and well below the minimum target of 80%. Meanwhile, forecasts of colder temperatures across Northwest Europe are likely to boost heating demand.