FX.co ★ UK Natural Gas Holds Near 6-Month Low

UK natural gas futures hovered around 85 pence per therm, maintaining proximity to the six-month low of 82 pence reached on April 8th. This trend is attributed to reduced demand and increased storage levels in neighboring European countries. Forecasts of milder weather conditions in Britain and the North Sea have further diminished the need for gas-intensive heating towards the latter part of April. Moreover, an influx of LNG shipments to Dutch gas trading hubs has enabled European utilities to begin replenishing stocks after the winter, reducing supply uncertainties for the remainder of the year and alleviating price pressures in the UK. However, ongoing macroeconomic uncertainty, alongside potential declines in trade flows and deteriorating business expectations, continues to exert downward pressure on natural gas prices.