UK natural gas prices rose above 132 pence per therm on Thursday, rebounding from a three-week low as concerns over the outlook for global gas supplies persisted.

Risk premiums in the market eased somewhat after Iran announced it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz. However, LNG supply risks remained elevated. Gas shipments through the strategic waterway continue to face significant disruptions, delaying cargoes from major exporters such as Qatar.

These delays have complicated Europe's winter stockpiling efforts, while strong competition from Asian buyers has further tightened LNG availability across global markets. LNG has become a cornerstone of European energy security following the sharp reduction in Russian pipeline gas imports, heightening sensitivity to any disruption in seaborne supply.

At the same time, unusually hot weather across central and southern Europe has added to market pressures by driving up electricity demand for air conditioning, increasing the call on gas-fired power generation.

EU gas storage facilities are currently just under 58% full, the lowest seasonal level in nearly two decades for this time of year. Under EU regulations, member states are required to reach at least 90% storage capacity by November 1, making the current shortfall particularly notable as the winter heating season approaches.

The Strait of Hormuz is one of the world's most critical energy transit chokepoints, through which a significant share of global LNG and crude oil shipments pass. Disruptions in the waterway can have outsized effects on energy markets due to the volume of cargo that transits it daily.

Qatar is among the world's largest exporters of LNG, alongside the United States and Australia, and any interruption to its shipping schedules can tighten global supply, particularly for European and Asian buyers who rely on flexible cargo deliveries.

Source: Trading Economics via Hellenic Shipping News