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EMEA Natural Gas Update: Futures Rise as Heatwaves Overwhelms Hormuz Relief

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European natural gas futures extended gains in late trading on Thursday as rising electricity demand from ongoing heatwaves outweighed bearish sentiment stemming from improvements in transit through the Strait of Hormuz.

The front-month Dutch TTF contract rose 4.245% to 44.595 euros ($51.00) per megawatt-hour, while the UK front-month NBP contract gained 4.484% to 106.250 British pence ($1.42) per therm.

European benchmark gas prices climbed back toward 44 euros/MWh, their highest level in nearly three weeks, as strong cooling demand offset some of the downward pressure following the reopening of the Strait of Hormuz, according to Trading Economics.

Extreme heat continued to grip large parts of Europe, driving up electricity consumption for air conditioning at a time when gas inventories remain well below seasonal norms, and countries are racing to rebuild stocks ahead of winter.

Spain and France are preparing for another intense heatwave that could push temperatures as high as 44 degrees Celsius (111 degrees Fahrenheit) in the coming days. The Guardian reported on Thursday that June's extreme heat was linked to more than 2,000 excess deaths across the two countries.

Spain's state meteorological agency, Aemet, said a mass of hot, dry air would bring persistently high temperatures across much of the country from Saturday, with southeastern regions expected to reach 42-44 degrees Celsius by Tuesday. Aemet also said June was Spain's second-warmest on record, exceeded only by June 2025, with average temperatures 3.2 degrees Celsius above normal.

On the storage side, EU inventories were 49% full, compared with 59% at the same time last year, according to Gas Infrastructure Europe. Inventories also remained well below the five-year average of 64% for this period, according to data from the Swiss Federal Office of Energy. Celsius Energy put current EU inventories at 1,891 Bcf, down 397 Bcf, or 17.3% below the year-ago level and 565 Bcf, or 23% below the five-year average.

"With storage replenishment progressing at a slower-than-usual pace, any sustained disruption to global LNG shipments or extended summer heatwaves could spark another sharp price spike ahead of the autumn buying season," Investing.com said.

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