19.06.202607:27:32UTC+00UK Natural Gas Set for Sharp Weekly Drop

UK natural gas prices climbed to about 99 pence per therm but remained on course for a weekly drop of more than 11%, as supply risks in the Middle East continued to ease. An interim peace agreement between the US and Iran, signed on Wednesday, has allowed shipping through the Strait of Hormuz to start normalizing, with several vessels reportedly passing through the waterway on Thursday. This development pushed UK gas prices to their lowest level since February 27, before the war began, erasing most of the conflict-driven gains. Meanwhile, Qatar, the world’s largest LNG exporter, is preparing to swiftly ramp up production at its Ras Laffan facilities and expects output at plants unaffected by Iranian strikes to return to full capacity within a month. The restoration of LNG exports from the Persian Gulf could bolster Europe’s efforts to rebuild relatively low gas storage levels ahead of next winter.