European natural gas prices reached a three-week high on Friday. The front-month Dutch TTF contract peaked at €44.6 per megawatt-hour, marking its highest level since mid-June. Crude oil prices fell simultaneously following the successful conclusion of U.S.-Iran peace talks.
Slow replenishment of storage facilities remains the primary driver for the price surge. Gas inventories currently sit significantly below the five-year average for this season. A heatwave across southern Europe is further increasing demand for gas-fired power to meet air-conditioning needs.
Traders are prioritizing structural supply deficits over improved maritime logistics in the Strait of Hormuz. While normalized shipping is expected to facilitate Qatari LNG flows, current physical supply has not calmed market fears regarding winter storage levels.