FX.co ★ UK Natgas Prices Rise to Over 4-Week High

UK natural gas futures have climbed to nearly 87 pence per therm, marking their highest level in over four weeks. This rise results from traders closely watching the shifting dynamics of supply and demand, as well as geopolitical factors. Starting May 22, northwest Europe is expected to experience cooler-than-usual temperatures, likely increasing heating demand. Concurrently, Norwegian gas exports are anticipated to decrease due to early maintenance at Norway's Kollsnes processing facility, with further reductions projected through May 21–22. These supply challenges are particularly critical for the UK, which has limited gas storage capabilities and relies heavily on imports from continental Europe. On the geopolitical side, prospects for a peace agreement in Ukraine have lessened after a two-hour discussion between US President Trump and Russian President Putin failed to achieve a breakthrough. Though direct negotiations between Moscow and Kyiv may continue, Russia's reluctance to agree to a cease-fire makes the immediate return of Russian gas to Europe improbable.