FX.co ★ European Gas Remains Near 3-Week High

European natural gas prices slipped toward €45 per MWh, but remained near a three-week high amid ongoing concern about the slow pace of storage refilling. The region’s storage outlook is still tight, with inventories at roughly 48% of capacity—well below the 56% seen at this time last year and the five-year seasonal average of 61%. These relatively low stock levels have heightened worries about Europe’s ability to build sufficient reserves ahead of the winter heating season. In the near term, prices are also being supported by elevated temperatures across much of the continent, which have boosted gas-fired power generation to meet increased air-conditioning demand. In addition, traders highlighted that LNG deliveries into Europe have not risen enough to significantly alleviate regional supply constraints, even as shipping activity through the Strait of Hormuz has picked up following progress in US-Iran diplomatic talks.