UK Gas Prices Fall Further Amid Improved Shipping Conditions
UK natural gas prices have dropped to around 140 pence per therm, extending Thursday's decline. This fall comes as shipping conditions through the Strait of Hormuz improve, despite regional tensions and steady LNG arrivals in Europe.
The first LNG tanker from Qatar passed through the waterway in over three weeks, raising hopes that exports could gradually resume. Increased LNG arrivals into Northwest Europe and stable pipeline flows from Norway have also eased supply concerns.
However, UK gas prices remain more than 34% higher than July's levels due to renewed US-Iran hostilities disrupting Persian Gulf supplies and heatwaves boosting electricity demand.
EU storage facilities are about 55% full, below the seasonal five-year average. This is behind the pace needed to comfortably meet pre-winter storage targets before the heating season begins in November.