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EMEA Natural Gas Update: European Gas Gains as Asian LNG Demand Counters Supply Relief

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European natural gas futures edged higher on Tuesday as easing tensions between the US and Iran reduced fears of major LNG supply disruptions, while warmer weather and tight inventories continued to support the market.

Front-month Dutch TTF contracts advanced 0.65% to 42.16 euros ($47.98) per megawatt hour, while UK NBP futures gained 0.71% to 100.65 British pence ($1.33) per therm.

Signs of de-escalation between Washington and Tehran helped calm energy markets.

US President Donald Trump posted on Truth Social on Tuesday that he had "... agreed to allow the Hormuz Strait to remain open, with no further naval blockade," easing concerns over disruptions to global LNG flows.

Complications around the restart of suspended production in the Persian Gulf continued to support gas prices.

An explosion at Qatar's Ras Laffan industrial complex on Monday raised fresh questions about the recovery of LNG output, according to Daniel Hynes, senior commodity strategist at ANZ Bank.

Asian buyers are returning to the spot LNG market, adding support to global gas prices. China has reportedly resumed spot purchases after a prolonged absence, while stronger cooling demand across the region is increasing competition for cargoes, Hynes said.

A total of 23 vessels transited the Strait of Hormuz over the past 24 hours, according to the Hormuz Strait Monitor. Traffic, however, remains well below the peacetime average of 138 ships per day, according to the UK's Joint Maritime Information Center.

EU gas storage remains low, despite slower inventory drawdowns due to warmer weather. Gas Infrastructure Europe reported inventories at 46.72%, down from 55.81% a year ago, with Germany at 38.73% and France at 47.85%.

European storage levels remain below seasonal norms, leaving the market vulnerable ahead of winter. Inventory levels as of Tuesday are currently below the five-year average for this time of year, while hotter weather forecasts are expected to lift cooling demand in the coming weeks, according to Trading Economics.

A heatwave across Europe helped limit downside pressure on gas prices. The market traded largely sideways on Tuesday as warmer temperatures supported demand despite easing geopolitical concerns, according to a note from Mind Energy.

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