European gas consolidates near 2022 peaks to lock in 3rd weekly gain
European and British wholesale natural gas futures held largely steady on Friday, hovering near their highest levels since late 2022 to lock in a third consecutive week of gains as structural supply anxieties continued to dominate energy bourses. The benchmark traded flat on the day at 86.10 euros per megawatt-hour (MWh). The steady performance capped ...
European and British energy markets saw natural gas futures stabilize near the highest levels seen since late 2022 on Friday, as structural supply concerns continued to push prices higher. The benchmark traded flat at 86.10 euros per megawatt-hour (MWh) on the day, marking a nearly 6% weekly increase and the third consecutive week of gains. In the United Kingdom, the equivalent futures held steady around 213.00 pence per therm, securing a 5.3% weekly rise.
Shipping disruptions and attacks in the Strait of Hormuz have limited the flow of seaborne Liquefied Natural Gas (LNG) from the Persian Gulf to European markets. Lengthy rerouting through the Cape of Good Hope has delayed spot deliveries to regasification terminals. Unplanned maintenance outages at Norwegian gas infrastructure, such as reduced processing at the Kårstø plant, also curtailed pipeline deliveries to Western European hubs, leading utilities to bid up spot prices.
While short-term weather forecasts suggest milder temperatures could temper further price increases, energy market experts warn that downside momentum is still limited by low storage levels. European Union underground gas storage facilities are currently at around 74% capacity, significantly below the typical 86% seen at this time of year.
This lower-than-normal inventory puts energy desks on alert that any late October cold snap or additional LNG supply disruptions could spark another price surge across European gas markets.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.