European gas jumps more than 10% as Strait of Hormuz talks fail to reassure traders
AI Market Summary
European natural gas surged over 10% as uncertainty persists around reopening the Strait of Hormuz and LNG flow normalization, while EU storage sits below 59% versus a 76% seasonal norm, tightening the pre-winter balance. Additional volatility stems from Norway's Ormen Lange supply cuts. US gas also jumped on forecast swings and short covering, underscoring an increasingly fragile global gas market.
Impact level
● High
Affected assets
NCCO7241NATGAS2USD/USDT+1.52%
AI Insight · NCCO7241NATGAS2USD/USDTAI Insight
▼ Bearish
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European benchmark gas futures surged more than 10% on Monday as traders remained unconvinced that negotiations involving Iran and Oman would quickly restore global LNG flows via the Strait of Hormuz. Europe’s storage sites are just under 59% full, well below the five-year seasonal norm of 76% and at the lowest seasonal level in records dating back to 2009. Citigroup strategists including Maggie Xueting Lin expect inventories to reach about 74% by the end of October if Middle East LNG exports gradually resume from mid-August, but warned of demand-spike risks if El Niño brings extreme cold spells, according to Bloomberg. Dutch TTF front-month futures settled at €61.24 per megawatt-hour, while US gas futures also posted their biggest gain in more than two months on short-covering tied to swings in weather forecasts.
