European Gas Prices Plummet as Chinese Demand Eases
European natural gas prices have fallen to their lowest level in a month, reaching €71 per megawatt-hour. Weaker Chinese demand has eased pressure on the tight global market, with China's LNG imports expected to decline for a second consecutive month.
China's September deliveries are forecast at about 5.3 million tons, roughly 8% below last year's figure, due to high prices linked to the Middle East conflict discouraging spot purchases.
The EU is facing increasing pressure to rebuild its gas inventories before winter, with around a fifth of global LNG normally transiting through the Strait of Hormuz.
EU storage facilities are about 71% full, well below the five-year seasonal average of 87%, while Germany's sites are just above 57%. The EU has urged countries to conserve energy and continue filling storage.