UK natural gas prices climbed above 108 pence per therm, hitting a new three-week high amid ongoing concerns about the slow pace of storage replenishment. The region’s storage outlook remains tight, with inventories at roughly 49% of capacity, significantly below the nearly 60% recorded at the same time last year. These relatively low stock levels are amplifying worries about the region’s ability to build sufficient reserves ahead of the winter season.
Adding to near-term price support, elevated temperatures across much of Europe have driven up gas-fired power generation to meet stronger air-conditioning demand. At the same time, traders noted that LNG deliveries to Europe have not yet increased enough to alleviate regional supply constraints, even as shipping activity through the Strait of Hormuz has picked up following progress in US-Iran diplomatic talks.
