UK natural gas prices eased to 194 pence per therm, retreating from a three-week high after US President Trump ruled out military action against Iran before the midterm elections. This statement helped ease concerns of an escalating conflict that could disrupt energy supplies. However, ongoing attacks on shipping in the Gulf kept worries about transit safety alive.
Meanwhile, cooler weather forecasts for Northwestern Europe could increase heating demand, potentially lifting gas prices. Despite recent gains in Europe's gas inventories, storage facilities remain at 73% capacity, still below levels seen a year ago. Gas network operators warned that limited liquefied natural gas (LNG) supplies could deplete storage to below 30% by winter's end, raising vulnerability to late-season cold snaps.
In the UK, strong wind energy generation in September reduced the reliance on gas-fired power, but the country remains exposed to broader price pressures. Despite Friday's decline, UK gas prices climbed over 3% this week, marking a second consecutive weekly gain.