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EMEA Natural Gas Update: Futures Fall as Traders Await Signals on Direction of US-Iran Conflict

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-- European natural gas futures fell sharply on Thursday, adding to heavy losses the day before as traders brace for signals in the coming hours on what direction the US-Iran war is likely to take next.

Dutch TTF futures slipped 2.2% to 42.93 euros ($50.56), while UK NBP contracts fell 2.7% to 104.49 British pence ($1.42).

Markets have been turbulent since the publication of an Axios article citing two US officials and two other sources familiar with developments, which said there was some optimism on the US side that Iran could agree to a one-page, 14-point memo providing a framework for halting the conflict.

US President Donald Trump, later, however, said the US would use force if no agreement was reached between the sides, to achieve its objectives, including preventing Iran from developing or obtaining a nuclear weapon.

ANZ Senior Commodities analyst Daniel Hynes noted that some European traders continue to hedge against a spike in prices next winter, with the task of refilling storage reserves having barely begun and looking daunting, given that Asian importers are already struggling to import enough to meet immediate needs.

EU gas storage levels stood at 34.07% of capacity on Wednesday, according to Gas Infrastructure Europe, well below 41.4% a year earlier.

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