European Natural Gas Prices Rebound from 2-Week Low
European natural gas prices rebounded to around €90/MWh from a two-week low of €88 on November 4, as persistent supply constraints continued to underpin the market. Despite the recent decline from record levels above €100/MWh, Europe’s energy balance remains fragile, with LNG deliveries from the Persian Gulf still disrupted by the Iran conflict. Tehran reported that a tanker had struck a mine in the Strait of Hormuz, while discussions with Oman are underway to restore shipping traffic. The conflict removed nearly a fifth of global LNG exports, leaving European inventories unusually low ahead of winter and intensifying competition with Asian buyers. EU storage levels have fallen to 74%, compared with a five-year seasonal average of 90%, while Germany’s reserves are below 61%. Colder temperatures and weaker wind and solar generation have increased withdrawals. Also, Norwegian pipeline supplies remain below capacity due to outages.
European natural gas prices rebounded to around €90/MWh from a two-week low of €88 on November 4, as persistent supply constraints continued to underpin the market. Despite the recent decline from record levels above €100/MWh, Europe’s energy balance remains fragile, with LNG deliveries from the Persian Gulf still disrupted by the Iran conflict. Tehran reported that a tanker had struck a mine in the Strait of Hormuz, while discussions with Oman are underway to restore shipping traffic. The conflict removed nearly a fifth of global LNG exports, leaving European inventories unusually low ahead of winter and intensifying competition with Asian buyers.
EU storage levels have fallen to 74%, compared with a five-year seasonal average of 90%, while Germany’s reserves are below 61%. Colder temperatures and weaker wind and solar generation have increased withdrawals. Also, Norwegian pipeline supplies remain below capacity due to outages.