European Gas Extends Rally

European natural gas prices climbed to €61.5 per MWh on Tuesday, extending the previous session’s rally, as hopes for a deal to reopen the Strait of Hormuz faded amid demands from the US and Iran. President Trump on Monday called for Iran to compensate for people it has killed in conflicts, after Tehran sought compensation for damage caused by US and Israeli attacks. The standoff has reduced expectations of an immediate resolution that would restore LNG flows through the Persian Gulf. The ongoing disruption has tightened global LNG supplies, intensifying competition with Asian buyers and hampering Europe’s efforts to replenish gas stockpiles ahead of winter. European gas storage sites recently fell to their lowest seasonal levels in records going back to 2009, heightening concerns over winter supplies. Traders are also monitoring extended supply cuts at Norway’s Ormen Lange gas field, Europe’s largest pipeline supplier, as further disruptions could amplify price volatility.





