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Europe gas futures jump more than 10% as Hormuz talks disappoint
Dutch front-month gas futures rose to €61.24 per MWh, while Europe’s storage is just under 59% full versus a 76% five-year norm for this time of year.
Europe’s natural gas prices jumped after talks between Iran and Oman aimed at reopening the Strait of Hormuz failed to convince traders of a quick resumption of LNG flows, raising concerns for winter supply in the region, according to LiveMint Markets.
Benchmark gas futures rose more than 10% on Monday, after Iran said an agreement was “very close” but also indicated Hormuz would not be immediately reopened, tempering hopes that Europe could rapidly replenish inventories.
Traders also weighed disruption risks from prolonged supply cuts at Norway’s Ormen Lange gas field, with Norway described as Europe’s biggest piped-gas supplier, which could amplify price swings if deliveries remain constrained.
With Europe less than three months from the start of its heating season and gas storage below seasonal expectations, the article notes storage sits just under 59% full, short of the five-year seasonal norm of 76%, while analysts cited by Citigroup expect storage around 74% by end-October if Middle East LNG exports gradually resume as of mid-August.
Latest closeNat gas $2.778 ▲4.4%