Europe gas prices ease on Trump's Iran comments, cooler weather provides support
UNG•European benchmark gas prices fell after Trump said the United States would not attack Iran before November's midterm elections. Cooler weather and lower expected LNG deliveries provided support, while European gas storage was 73.12% full.
1. Prices edge lower
The Dutch front-month gas contract fell €1.03 to €77.82 per megawatt hour, or $25.32 per mmBtu, by 0839 GMT on Friday. The British front-month contract declined 2.31 pence to 193.36 pence per therm. Trump said the United States would not attack Iran before November's midterm elections and described talks between the countries as “productive.”
2. Supply and demand tighten
Northwest European LNG injections were expected to be about 130 gigawatt hours per day lower on Monday than Thursday's 2,163 GWh/d, with Germany's Wilhelmshaven 2 terminal offline and French nominations for the Fos terminal decreasing. Gas demand for heating and power generation was forecast to rise by 264 GWh/d and 511 GWh/d, respectively, as temperatures fell and wind speeds dropped below normal.
3. Storage and winter outlook
European gas storage was 73.12% full, the lowest level for this time of year since records began in 2011. The Institute for Energy Economics and Financial Analysis said the bloc may need to cut gas demand by 7% year on year in the 2026–27 winter, combined with the EU's full ban on Russian LNG imports from January 2027.
