European Gas Heads for First Monthly Gain in Four Months Amid Middle East Tensions

European wholesale natural gas prices were little changed on Friday, with the Dutch TTF benchmark trading near €57.60/MWh and the UK benchmark around 141 pence per therm. Despite the quiet session, TTF remained on track for its first monthly gain in four months.

Natural gas prices were supported during July by ongoing geopolitical tensions in the Middle East, concerns over LNG shipments through the Strait of Hormuz, and slower-than-usual storage injections due to hot weather across parts of Europe.

TTF prices gained more than 30% during the month, while EU gas storage stood at around 55% of capacity at the end of July, below both last year's level and the five-year average.

The winter heating season begins on November 1, leaving market participants focused on storage levels and supply conditions ahead of the colder months.

Because LNG is traded globally, developments in European gas demand and supply may also influence other importing regions, including Asia.

Sources: Reuters, Investing.com.