Middle East tensions limit Persian Gulf LNG flows
European natural-gas prices remain “well supported,” with the Dutch TTF benchmark contract trading at 82.265 euros a megawatt-hour on Tuesday — down 0.3% on the session — according to ING analysts.
The bank, in a note circulated Tuesday morning, said European prices show little prospect of falling further in the near term. ING attributed the support to escalation in the Middle East, which the bank said is reducing the prospect of an imminent pickup in liquefied natural gas flows from the Persian Gulf.
“The global LNG market will therefore be tight as the Northern hemisphere enters its heating season,” ING analysts wrote.
With global supply constrained and seasonal demand rising, ING said Europe will struggle to hit even the lower end of its storage targets — at least 75% capacity ahead of winter. The 75% threshold represents the minimum level the bank said Europe needs to reach, suggesting the continent may enter the heating season with storage below its target range.