European Gas Remains Near 3-Week High

European natural gas prices fell toward €45 per MWh but remained close to a three-week high amid persistent concerns over the sluggish pace of storage refilling. The region’s storage outlook remains tight, with inventories currently at around 48% of capacity, well below the 56% recorded during the same period last year and the five-year seasonal average of 61%. The relatively low inventory levels have reinforced concerns about the region’s ability to build adequate reserves ahead of winter. Also providing near-term support for prices, high temperatures across much of Europe accelerated gas-fired power generation to meet air-conditioning demand. Moreover, market participants noted that LNG deliveries to Europe have yet to increase sufficiently to ease regional supply constraints, despite a pickup in shipping activity through the Strait of Hormuz following progress in US-Iran diplomatic talks.