European Gas Prices May See Limited Declines Amid Qatari LNG Shortage

European natural gas prices may not decline further despite an initial 8% drop following news of US President Trump's speech with Iranian President Pezeshkian at the UN General Assembly.

Norman Liebke, a Commerzbank expert, suggests that the Strait of Hormuz closure has limited the supply of Qatari LNG to just 20% of pre-war levels.

This shortage contributes to elevated Asian prices and low European storage levels, which are now around 70% full - about 15 percentage points below the five-year average.

In Germany, gas storage facilities are even more depleted at 57%, prompting potential emergency purchases by the federal government.