European Natural Gas Prices Fall to 4-Week Low
European natural gas prices fell to around €82/MWh, their lowest level since October 9, extending a 17.7% loss in the previous week, as hopes of a diplomatic resolution to the Middle East conflict grew. President Donald Trump said it’s highly unlikely he will order extensive strikes on the Islamic Republic, although Secretary of State Marco Rubio cautioned that negotiations may not deliver rapid progress. However, prices remain well above their pre-war levels, as the disruption of Middle Eastern LNG exports, which previously accounted for around a fifth of global supply, leaves Europe facing a tight market ahead of winter. EU gas storage is below 73%, well below the five-year seasonal average of 90%, while Germany’s inventories are below 60%. Colder temperatures and weaker wind and solar generation have increased withdrawals, while Norwegian pipeline supplies remain constrained by outages. Competition for LNG is also expected to intensify as Asian buyers increase spot purchases.
European natural gas prices fell to around €82/MWh, their lowest level since October 9, extending a 17.7% loss in the previous week, as hopes of a diplomatic resolution to the Middle East conflict grew. President Donald Trump said it’s highly unlikely he will order extensive strikes on the Islamic Republic, although Secretary of State Marco Rubio cautioned that negotiations may not deliver rapid progress. However, prices remain well above their pre-war levels, as the disruption of Middle Eastern LNG exports, which previously accounted for around a fifth of global supply, leaves Europe facing a tight market ahead of winter.
EU gas storage is below 73%, well below the five-year seasonal average of 90%, while Germany’s inventories are below 60%. Colder temperatures and weaker wind and solar generation have increased withdrawals, while Norwegian pipeline supplies remain constrained by outages. Competition for LNG is also expected to intensify as Asian buyers increase spot purchases.