European Gas Prices Edge Up Amid Shipping Disruptions and Storage Shortages
European natural gas prices edged up on Thursday, defying temporary relief from a stabilizing global bond market. The modest gain of 0.2% in Dutch front-month futures was overshadowed by persistent shipping disruptions through the Strait of Hormuz and storage shortages.
The acute disruption to commercial transit through the Persian Gulf has left tanker traffic severely depressed at single-digit levels, far below pre-war baselines. This has stranded Qatari LNG cargoes, forcing European utilities into fierce bidding wars with Asian buyers for spot market shipments.
Data from Gas Infrastructure Europe shows that underground gas storage caverns across the EU are holding at around 60% of total capacity. The summer's heatwaves and delayed LNG deliveries have hindered the seasonal replenishment process, leaving the continent with thin buffers ahead of the autumn heating season.