European natural gas prices stabilized on Thursday after a three-day slide, with the Dutch front-month benchmark holding virtually flat at €65.61 per megawatt-hour. British wholesale gas futures also remained near steady at 160.50 pence per therm, following a 3% decline the previous session.
The stabilization coincided with diplomatic progress in the Middle East, where reports indicated Washington and Tehran were nearing a provisional ceasefire agreement that includes protections for commercial shipping through the Strait of Hormuz. Qatar’s Prime Minister traveled to Tehran this week to assist in negotiations aimed at restoring unrestricted maritime transit, easing concerns over potential disruptions to liquefied natural gas (LNG) shipments.
Supply tightness persists in Europe ahead of the autumn heating season, with Gas Infrastructure Europe data showing underground storage at roughly 62% of capacity. High power-generation demand during summer heatwaves and delayed Qatari LNG deliveries have slowed seasonal storage injections, leaving European hubs vulnerable to price volatility as winter approaches. ING analysts warned that storage levels are well behind schedule, increasing the risk of a structural deficit before cold weather sets in.
Brent crude oil found support around $87.40 per barrel after four consecutive sessions of decline, with the contract last trading at $87.44, up 0.17% or 0.19% from the prior session. UBS noted that U.S. gas inventories remain about 8% above the five-year average, while expanding U.S. LNG export capacity is expected to ease Europe’s supply constraints by year-end, provided maritime routes through key choke points remain secure.
