07.07.202601:32:22UTC+00European Gas Prices Rebound

European natural gas prices climbed toward €45 per MWh on Tuesday, recovering part of the previous session’s losses amid forecasts of an impending summer heatwave across the region. Weather models point to another bout of extreme heat in Northwest Europe, a development expected to sharply increase air-conditioning use and, in turn, power demand.

This anticipated rise in consumption comes at a time when regional gas inventories remain comparatively low. Storage sites are currently about 49% full, well below the nearly 60% level recorded at the same point last year, intensifying concerns over Europe’s ability to rebuild adequate reserves before the winter heating season.

At the same time, market participants noted that LNG imports into Europe have yet to increase sufficiently to alleviate regional supply constraints, even as shipping activity through the Strait of Hormuz has picked up following reported progress in US–Iran peace talks.