FX.co ★ UK Natural Gas Futures Fall to 16-Month Low

UK natural gas futures have declined to approximately 76.5 pence per therm, reaching their lowest point since July 2024. This decrease follows a reduction in European prices and an improved outlook on possible peace negotiations concerning the Russia-Ukraine conflict. Progress indicated by US-Ukraine discussions in Geneva could potentially alter global energy supply routes. Europe continues to vie for energy resources as it gradually eliminates dependence on Russian gas, which now constitutes merely 10% of EU imports. Additionally, prices have been suppressed by forecasts predicting warmer-than-usual weather for early December. Favorable weather conditions, coupled with high wind energy production and increased deliveries from LNG and Norwegian pipelines, have significantly reduced domestic demand. Due to limited storage capabilities, the UK has been exporting its excess gas to Europe, with recent flows to Belgium reaching a peak not seen in a year.