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Natural Gas Update: European Futures Fall, US Edges Higher With Middle East Diplomacy in Focus

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European natural gas futures slid on Tuesday after Iran hinted at potential de-escalation in its conflict with the US in the coming days.

Front-month Dutch TTF futures dropped 2.68% to 71.290 euros ($81.67) per megawatt-hour, while British NBP futures were down 2.40% to 177.240 British pence ($2.37) per therm. Front-month Henry Hub futures were up 0.60%, at $2.853 per million British thermal units.

On Tuesday, Iran said that it could reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade against the country, according to a Reuters report citing a senior Iranian official.

US natural gas futures edged higher despite a dip in gas consumption for power generation by 1,166 million cubic feet per day. LNG export feedgas at 18.52 billion cubic feet was offset by a drop in domestic output by 282 MMcf/d, according to data from NRG Energy.

European gas inventories stood at 69.94% of capacity, compared to 81.61% a year ago, according to Gas Infrastructure Europe. They were also below the five-year average for this time, at 85.6%, according to the Swiss Federal Office of Energy.

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Update: UK Reportedly Weighs Providing Military Support to Saudi Arabia Against Houthi Attack

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Oil & Energy

Higher Hormuz Oil Flows May Offset Supply Risks From Russia-Ukraine Strikes, Macquarie Says

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Oil & Energy

Oil Update: Crude Tumbles as Trump Signals Iran Talks, Saudi Exports Recover

Crude futures tumbled in after-hours trading on Monday, as markets weighed the prospect of peace talks between the US and Iran amid signs that Saudi Arabia was recovering some crude exports despite the widening Middle East conflict.Front-month West Texas Intermediate futures tumbled 4.8% to $95.48 per barrel, while Brent futures fell 3.6% to $100.16/bbl. Dubai 1st Line Futures were down 3.1% to $90.92/bbl.ING strategists said that the pullback comes despite ongoing geopolitical risks and continued concerns over global oil supply disruptions.President Trump reportedly halted strikes against Yemen's Houthis for now, while indicating that he was open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly.On the supply front, Saudi Aramco loaded about 14 million barrels of crude on seven supertankers inside the Mideast Gulf on Sunday, according to media reports. The Gulf state has reportedly moved about 2.9 million barrels per day of crude through the Hormuz over the past six days, up from just 700,000 b/d in August.The US Central Command also said crude and LNG flows through Hormuz have reached a six-month high over the past two weeks, with key transit lanes clear of mines.Gelber & Associates strategists said Saudi exports have recovered to above 4 million b/d in September from 2.4 million b/d in August, with flows through the Strait of Hormuz averaging 2.9 million b/d during the past six days.