UK Natural Gas Prices Rebound

UK natural gas prices surged to above 132 pence per therm on Thursday, marking a rebound from a three-week low as lingering doubts about gas supply availability persisted. The risk premiums softened after Iran and Oman reached an agreement on a proposed shipping route through the Strait of Hormuz; however, LNG supply risks remained high.

Disruptions in gas shipments through the crucial waterway, caused by delays from major exporters like Qatar, have hampered Europe's winter stockpiling plans. Intense competition from Asian buyers has also squeezed LNG availability. Meanwhile, unusually high temperatures in central and southern Europe have further strained the market by boosting electricity demand for air conditioning.

Currently, EU gas storage facilities are at a mere 58% capacity, the lowest seasonal level in nearly two decades for this time of year.