31.07.202606:48:27UTC+00UK Gas Prices Drop Further

UK natural gas prices fell to around 140 pence per therm on Friday, extending Thursday’s losses amid signs of improving shipping conditions in the Strait of Hormuz, despite ongoing regional tensions and steady LNG inflows into Europe. Qatar dispatched its first LNG tanker through the strait in more than three weeks, fueling expectations that exports from one of the world’s largest LNG suppliers could gradually resume.

Rising LNG arrivals in Northwest Europe and stable pipeline deliveries from Norway further eased supply concerns. Nonetheless, UK gas prices remain over 34% higher for July. The recent surge has been driven by renewed US–Iran hostilities disrupting Persian Gulf supplies and heatwaves pushing up power demand, which has constrained Europe’s capacity to rebuild gas inventories ahead of winter.

EU storage sites are currently about 55% full, below the seasonal five-year average and lagging the pace required to comfortably reach pre-winter storage targets before the heating season begins in November.