European Gas Prices Rebound

European natural gas prices rose to around €45.8 per MWh on Tuesday, recouping losses from the previous session amid forecasts of a renewed heatwave in the region. Weather models indicate that another spell of extreme heat is set to hit Northwest Europe, which is expected to significantly boost air-conditioning use and power demand. The increase in demand comes as the region’s gas inventories remain relatively low, with storage facilities currently around 49% full, well below the nearly 60% level recorded at the same time last year. This has heightened concerns over whether Europe will be able to rebuild sufficient reserves ahead of winter. Moreover, market participants noted that LNG inflows into Europe have not yet risen enough to ease regional supply constraints, even as shipping activity through the Strait of Hormuz surged. Separately, Iran reportedly fired missiles at commercial ships transiting the Strait on Monday, testing its deal with the US to stop hostilities.