UK natural gas prices climbed above 132 pence per therm on Thursday, rebounding from a three-week low amid persistent concerns about future gas supplies. Although risk premiums eased after Iran announced it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, LNG supply risks remain elevated. Shipments through this critical chokepoint continue to experience significant disruptions, delaying cargoes from major exporters such as Qatar.
These delays are complicating Europe’s efforts to build up winter stocks, while strong competition from Asian buyers is further tightening LNG availability. At the same time, unusually hot weather across central and southern Europe is intensifying market pressures by boosting electricity demand for air conditioning. EU gas storage facilities are currently just under 58% full, the lowest seasonal level for this time of year in nearly two decades.
