UK natural gas prices rose past 108 pence a therm, reaching a fresh three-week high amid persistent concerns over the sluggish pace of storage refilling.
The region’s storage outlook remains tight, with inventories currently at around 48% of capacity, well below the 56% recorded during the same period last year and the five-year seasonal average of 61%.
The relatively low inventory levels have reinforced concerns about the region’s ability to build adequate reserves ahead of winter.
Also providing near-term support for prices, high temperatures across much of Europe accelerated gas-fired power generation to meet air-conditioning demand.
Moreover, market participants noted that LNG deliveries to Europe have yet to increase sufficiently to ease regional supply constraints, despite a pickup in shipping activity through the Strait of Hormuz following progress in US-Iran diplomatic talks.