European natural gas prices fell to roughly €57 per MWh on Friday, extending the previous session’s losses. The decline came amid indications that shipping conditions in the Strait of Hormuz are improving, despite ongoing regional tensions, and as fresh LNG cargoes continue to arrive in Europe. Qatar dispatched its first LNG tanker through the strait in more than three weeks, bolstering expectations that exports from one of the world’s largest LNG suppliers could gradually resume.
Consistent LNG deliveries to Northwest Europe, together with stable pipeline supplies from Norway, further alleviated immediate supply concerns. Nonetheless, EU gas prices remain over 33% higher in July. Renewed hostilities between the US and Iran have disrupted flows from the Persian Gulf, while heatwaves have driven up electricity demand, curbing Europe’s capacity to rebuild gas inventories ahead of winter.
EU storage sites are currently about 55% full, below the five-year seasonal average and lagging the pace required to comfortably reach pre-winter storage goals before the heating season starts in November.
